Rent vs Buy Calculator
Compare the true financial costs of renting versus buying a home over time. Make an informed decision based on your situation.
Rent & Investment
Results Comparison
Renting
Net Worth at End
$0
Monthly Cost (Initial)
$0
Total Rent Paid
$0
Investment Value
$0
Investment Gains
$0
Buying
Net Worth at End
$0
Monthly Cost (Initial)
$0
Total Payments
$0
Home Equity
$0
Home Appreciation
$0
Invested Cost Savings
$0
Net Worth Difference
$0
Break-Even Year
--
Monthly P&I Payment
$0
Down Payment
$0
Model Comparison
Enter your details above to compare the two modeled outcomes.
Model limits: Estimates exclude purchase closing costs, selling costs, tax deductions and capital-gains effects, security deposits, investment taxes and fees, and the value of liquidity or housing stability. Treat the result as a scenario comparison, not financial advice.
Net Worth Over Time
Frequently Asked Questions
The decision depends on your time horizon, cash flow, local market, financing, and personal preferences. Use this calculator to compare scenarios based on the assumptions you enter, but remember that it excludes transaction costs, tax effects, and non-financial considerations such as liquidity and housing stability.
In this calculator, the break-even year is the first projected year when modeled buyer net worth exceeds modeled renter net worth. It depends on every assumption entered and may never occur within the selected horizon. Real-world transaction costs and taxes, which are not modeled here, can shift that point.
Homeownership costs include: mortgage principal and interest, property taxes (typically 0.5-2.5% of home value annually), homeowner's insurance, HOA fees if applicable, maintenance and repairs (typically 1-2% of home value annually), and potential PMI if your down payment is less than 20%.
Home appreciation is a critical factor. Historically, U.S. home prices have appreciated 3-4% annually on average, though this varies significantly by location and time period. Higher appreciation rates favor buying, while flat or declining markets may favor renting. This calculator factors in appreciation when calculating your net worth from buying.