Rent vs Buy Calculator
Should you rent or buy a home? Compare the true financial impact over time.
Photo by Nothing Ahead / Pexels
Renting
Photo by Nothing Ahead / Pexels
Photo by Nothing Ahead / Pexels
Buying
Photo by Nothing Ahead / Pexels
Photo by Nothing Ahead / Pexels
Investment & Timeline
Photo by Nothing Ahead / Pexels
How This Calculator Works
This calculator compares the true financial impact of renting versus buying by accounting for all costs: mortgage payments (principal + interest), property taxes, insurance, HOA, and maintenance for buying; rent payments and renter's insurance for renting. The down payment opportunity cost is modeled by assuming a renter invests the equivalent amount at the expected investment return rate. Monthly savings from the cheaper option are also invested. Home equity builds through mortgage amortization and appreciation, while selling costs (6%) are deducted from home value. The break-even year is when buying's net wealth first exceeds renting's.