Renting net cost
$16,382$2,220/mo starting rent cost · investment value $124,979Rent vs. Buy Calculator
Compare renting versus buying using rent, home price, down payment, mortgage rate, taxes, insurance, HOA fees, appreciation, investment return, and time…
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Rent vs. Buy Calculator
Compare renting and buying by monthly cost, net worth, equity, investment growth, break-even year, and total net cost over your time horizon.
Compare the whole picture. The model estimates renting costs, buyer cash flow, home equity, sale proceeds, PMI, closing costs, selling costs, home appreciation, and investment growth on cash not used to buy.
🏠 Renting has the lower estimated net costRenting is ahead by about $109,273 over 5 years after estimating investment growth on the cash not used to buy.
Buying net cost
$125,655$3,058/mo starting ownership cost · equity $138,425Break-even estimate
Year 8Buying net worth catches up to renting around year 8.Monthly — rent$2,220/mo
Monthly — buy$3,058/mo
Down payment$40,000
Closing costs$12,000
Equity built$138,425
Investment value$124,979
Home value at sale$476,377
Total interest paid$118,050
Sensitivity scenarios
If appreciation rises to 5%/yr$74,525 renting advantage
If appreciation falls to 1%/yr$161,798 renting advantage
If mortgage rate was 5.5%$65,775 renting advantage
If you put 20% down$102,497 renting advantage
If investment returns were 5%/yr$99,456 renting advantage
If you stayed 10 years instead$78,044 renting advantage
Cost breakdown
Total rent paid$140,161
Renter investment portfolio$124,979
Buyer loan amount$360,000
Buyer monthly P&I$2,335/mo
Buyer PMI estimate$240/mo
Net advantage$109,273 renting advantage
Year-by-year net wealth comparison
| Year | Rent paid | Invested savings | Buyer equity | Home value | Net advantage |
|---|---|---|---|---|---|
| Year 1 | $26,400 | $66,208 | $58,063 | $414,227 | $32,998 renting advantage |
| Year 2 | $53,592 | $80,621 | $76,900 | $428,960 | $29,458 renting advantage |
| Year 3 | $81,600 | $95,228 | $96,546 | $444,216 | $25,335 renting advantage |
| Year 4 | $110,448 | $110,018 | $117,041 | $460,016 | $20,578 renting advantage |
| Year 5 | $140,161 | $124,979 | $138,425 | $476,377 | $15,137 renting advantage |
Formula
How the rent versus buy comparison works
The calculator compares estimated renting costs with the cash flow and equity from buying. It also estimates the investment value of money that a renter may keep instead of using it for a down payment and closing costs.
Renting value = invested down payment + closing costs + monthly savings
Buying value = home value − mortgage balance − selling costs
Net advantage = buying value − renting investment value
Break-even
Why time horizon matters
Buying often has higher upfront costs, while renting can preserve cash and flexibility. The break-even year estimates when the buyer's equity and sale proceeds may catch up with the renter's invested savings.
Buyer monthly cost = P&I + tax + insurance + HOA + PMI
Renter monthly cost = rent + renters insurance
Use cases
When to use this rent vs. buy calculator
Use it before deciding whether to rent longer, buy now, increase your down payment, adjust your target price, or compare local rent and home-price assumptions.
Compare the net cost of renting versus buying over your expected time horizon
Review the estimate alongside local home prices, rent trends, taxes, lender quotes, maintenance expectations, and your personal timeline.
Estimate buyer equity, sale proceeds, and remaining mortgage balance
Review the estimate alongside local home prices, rent trends, taxes, lender quotes, maintenance expectations, and your personal timeline.
Estimate renter investment growth from saved down payment and closing costs
Review the estimate alongside local home prices, rent trends, taxes, lender quotes, maintenance expectations, and your personal timeline.
Check the break-even year when buying may catch up with renting
Review the estimate alongside local home prices, rent trends, taxes, lender quotes, maintenance expectations, and your personal timeline.
Compare sensitivity scenarios for appreciation, mortgage rates, down payment, and investment return
Review the estimate alongside local home prices, rent trends, taxes, lender quotes, maintenance expectations, and your personal timeline.
Review monthly rent and ownership costs before deciding whether to rent longer or buy now
Review the estimate alongside local home prices, rent trends, taxes, lender quotes, maintenance expectations, and your personal timeline.
Calculator details
Rent vs. Buy Calculator formula, assumptions, and examples
Last updated: July 2026
Formula used
Formula used
Rent vs. Buy Calculator uses the values you enter to estimate totals, rates, percentages, payments, balances, or comparison results for planning.
Assumptions
Assumptions
- The numbers entered are accurate and use the same currency or time period.
- Rates, taxes, fees, deductions, and contribution rules can change.
- Rounding, timing, and real-world provider rules may cause small differences.
Example calculation
Example calculation
Enter a simple rent vs. buy calculator scenario, review the estimated result, then adjust one input at a time to compare outcomes.
When to use this calculator
When to use this calculator
Compare the net cost of renting versus buying over your expected time horizon
Disclaimer
Disclaimer
This calculator is for estimation and educational use only. It does not replace professional financial, tax, legal, mortgage, investment, or accounting advice.
Questions
Frequently Asked Questions
What does a rent vs. buy calculator compare?
A rent vs. buy calculator compares the estimated financial outcome of renting and investing saved cash versus buying a home and building equity over a selected time horizon.
What is the break-even point for renting versus buying?
The break-even point is the estimated year when buying becomes financially similar to or better than renting based on the entered assumptions for rent, home price, financing, appreciation, and investment returns.
Does the calculator include maintenance costs?
The calculator focuses on core rent, mortgage, tax, insurance, HOA, PMI, closing cost, selling cost, appreciation, and investment assumptions. Actual maintenance, repairs, tax deductions, and local costs can change the result.
Should I buy if the calculator says buying is cheaper?
Not automatically. The result is an estimate only. Job stability, relocation plans, emergency savings, maintenance risk, local market conditions, loan approval, and lifestyle flexibility should also be considered.
