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Rent vs Buy Calculator

Compare the net worth impact of renting versus buying a home over a selected time horizon.

Compare Wealth, Not Just Payment

Renting can preserve upfront cash for investing. Buying can build equity and benefit from appreciation, but transaction and ownership costs matter.

This calculator keeps both sides on the same timeline, then compares final renting net worth against final buying net worth.

Renting Assumptions

Set the current rent and how quickly rent is expected to rise.

Current monthly rent for a comparable home.

$

Expected yearly rent growth.

%

Return on cash not used for buying, and on monthly savings.

%

How many years to compare before selling or reassessing.

years

Home Purchase

Set purchase price, upfront cash, mortgage terms, and expected appreciation.

Purchase price for the home you are considering.

$

Cash paid upfront toward the purchase price.

$

Annual fixed mortgage interest rate.

%

Length of the mortgage in years.

years

Expected annual home value growth.

%

Upfront purchase costs as a percent of home price.

%

Ownership Costs

Add recurring costs and the estimated sale cost at the end of the comparison.

Annual property tax as a percent of home value.

%

Estimated annual insurance premium.

$
/year

Monthly homeowners association dues.

$
/mo

Annual maintenance as a percent of home value.

%

Estimated agent commissions and transaction costs when selling.

%

Rent vs Buy Results

Net worth comparison after the selected analysis period.

--
Better Option
At selected horizon
--
Net Advantage
Final net worth lead
--
Buy Break-Even
First year buying catches renting
--
First-Year Monthly Gap
Ownership cost minus rent

Rent vs Buy Net Worth Over Time

Compare buying net worth, renting net worth, and sale-adjusted home equity.

Enter rent and purchase assumptions to render the comparison chart.

Final Net Worth

Buying net worth
--
Renting net worth
--
Net home equity
--
Renter portfolio
--

Cost Context

Mortgage P&I
--
Upfront cash
--
Total rent paid
--
Owner cash outflow
--

Comparison Summary

Enter assumptions to compare renting and buying.

How Rent vs Buy Math Works

The model compares net worth after transaction costs, equity, and invested cash.

Net worth comparison

Buying is measured as home equity after estimated selling costs plus any monthly savings invested by the owner. Renting is measured as the invested upfront cash plus monthly savings when renting is cheaper.

Monthly ownership costs

The model includes mortgage principal and interest, property tax, homeowners insurance, HOA dues, and maintenance. Property tax and maintenance scale with the projected home value.

Break-even timing

The break-even year is the first yearly checkpoint where the buying net worth estimate is at least as high as the renting net worth estimate.

The output is sensitive to appreciation, investment return, rent growth, tax assumptions, and how long you stay in the home. Test multiple scenarios before treating the break-even year as a decision rule.

Rent vs Buy FAQ

Common interpretation questions for the home buying decision.

How is this different from a mortgage calculator?

A mortgage calculator estimates the payment for a home purchase. This calculator compares the broader decision: rent payments, invested cash, ownership costs, mortgage balance, home equity, appreciation, and selling costs over a selected period.

Why does the renter invest the down payment?

The comparison assumes money not used to buy the home can be invested. That keeps the decision focused on net worth instead of only monthly payment differences.

Does this include every real homeownership cost?

No. It is a planning estimate. Utilities, tax deductions, repair timing, moving costs, transaction timing, local tax rules, and market volatility can change the real outcome.