Rent vs. Buy Calculator

Compare the real cost of buying a home against renting and investing the difference — see which builds more net worth, and the year buying breaks even.

Mortgage, taxes, maintenance, appreciation, and closing/selling costs all included.

See methodologyPlanning estimates only. Results depend on your inputs, tax status, and assumptions.

Net-worth comparisonBreak-even yearCrossover chartAll real costs

If you buy

Home price

Down payment (%)

Mortgage rate (%)

Loan term (years)

Property tax (%/yr)

Home insurance ($/yr)

HOA ($/mo)

Maintenance (%/yr)

Closing costs (%)

Home appreciation (%/yr)

Selling costs (%)

If you rent

Monthly rent

Rent increase (%/yr)

Renters insurance ($/mo)

Assumptions

Investment return (%/yr)

Years you'll stay

Compares net worth: the buyer's home equity (net of selling costs) vs. the renter investing the same upfront cash plus whatever they save each month. All in future dollars.

After 10 years

Renting comes out ahead by $76,400

Net worth if you buy: $288,391 · if you rent & invest: $364,791. Renting stays ahead the whole 10 years.

Net worth over time

Where the lines cross is your break-even point.

BuyRent + invest

Upfront cash to buy (down + closing)$115,000

Monthly cost, year 1 — buy$3,686

Monthly cost, year 1 — rent$2,515

Home value in 10 years$671,958

Mortgage balance left$343,250

This is a net-worth comparison in future dollars: it assumes the renter invests the money a buyer ties up, and that whoever pays less each month invests the difference. It doesn't model income-tax effects (mortgage-interest or SALT deductions, investment taxes), PMI, or moving costs, and results are highly sensitive to the appreciation and investment-return assumptions. Not financial advice.

Share this scenario

Copy your current inputs and send them to a partner, agent, or future self.

Save this scenario

Bookmark your current inputs on this device so you can come back to them or compare with other saved scenarios.

How this calculator works

The honest way to compare renting and buying isn't monthly payment vs. rent — it's net worth. This tool runs a month-by-month simulation of both paths. The buyer builds equity as they pay down the mortgage and the home appreciates; the renter invests the cash a buyer would tie up (down payment and closing costs), plus whatever they save whenever renting costs less than owning.

At the end, it compares what each person could walk away with — the buyer's home equity net of selling costs vs. the renter's investment portfolio — and finds the year the two cross, your break-even point.

Net worth, not payments

Equity + appreciation vs. invested savings.

Break-even year

How long you'd need to stay for buying to win.

Real costs

Taxes, maintenance, HOA, closing and selling costs.

Opportunity cost

What the renter earns investing instead.

Good to know

Results are very sensitive to two guesses: home appreciation and investment return. Try a range for both.

The biggest driver is usually how long you'll stay — transaction costs make short stays favor renting.

This doesn't model income-tax effects (mortgage-interest/SALT deductions, investment taxes), PMI, or moving costs.

It's a planning comparison, not financial advice.

✓No account or sign-up required

✓Month-by-month net-worth simulation

✓Shareable, exportable results

Frequently asked questions

How does this calculator work?+

It compares net worth: the buyer's home equity (net of selling costs) vs. the renter investing the same upfront cash plus monthly savings. Whoever ends with more wins, and the break-even is when buying catches renting.

Is it cheaper to rent or buy?+

It depends on price-to-rent, how long you stay, your mortgage rate, appreciation, and investment returns. Buying tends to win the longer you stay; renting often wins over short horizons or when investments beat appreciation.

What's the break-even point?+

The number of years you'd need to stay for buying to match renting-and-investing. Before it, renting is ahead; after it, buying is.

Does it include tax benefits of owning?+

No — it focuses on cash flow, equity, and investment returns, and doesn't model mortgage-interest/property-tax deductions, PMI, or investment taxes.

Keep planning your home purchase

Once you've decided, size up the payment and what you can afford.