Rent vs Buy Calculator

Buying Parameters

Home Price ($)

Down Payment (%)

Down Payment ($)

Mortgage Rate (%)

Mortgage Term (years)

Annual Property Tax ($)

Property Tax (% / year)

Annual Home Insurance ($)

Monthly HOA Fees ($)

Annual Maintenance (% of home)

Annual Maintenance ($/year)

Home Appreciation Rate (%/year)

Renting Parameters

Monthly Rent ($)

Annual Rent Increase (%)

Annual Renters Insurance ($)

Investment Return (%/year) Historical S&P 500 average is ~10%; 7–8% is a conservative estimate.

Years to Analyze

Additional Months

Net Worth Comparison

Winner After --

Fill in fields to calculate

Buying Net Worth

Renting Net Worth (Investment Portfolio)

Difference

Break Even Point

When buying becomes better

Cost Breakdown

Total Cost of Buying (Over --)

Total Cost of Renting (Over --)

Monthly Payment (Buying)

How It's Calculated

Monthly Mortgage: Loan × [r(1+r)ⁿ] ÷ [(1+r)ⁿ-1] where r = monthly rate, n = total payments

Buying Net Worth: Home Value × (1 + Appreciation Rate)ⁿ - Loan Balance - 6% Selling Costs

Renting Net Worth: Down Payment invested + Monthly Savings Differential, compounding at investment return rate

Key Assumption: Renter invests down payment amount and difference between monthly buy vs rent costs

Net Worth Over Time

If You Decide to Rent, You Will Need to Invest.

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Key Considerations

What the numbers don't capture

Flexibility

Renting offers easy relocation for career opportunities. Buying ties you to a location but builds forced savings through home equity.

Market Timing

Housing markets are cyclical. Buying at peak prices or high interest rates can significantly impact returns. Be patient.

Opportunity Cost

Down payment money could compound in the stock market. This calculator accounts for that, but many analyses don't.

Lifestyle Factors

Emotional satisfaction, stability for kids, ability to customize - these matter but can't be quantified in a calculator.

Rent Forever vs Buy a Place