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Rent vs. Buy Calculator

Compare the wealth created by buying with the wealth created by renting and investing the difference.

Compare two housing paths over the same time horizon, then review and save. Enter 0 for costs that do not apply.

1 · Homes and time horizon

Current monthly rentHome purchase priceYears before movingThe comparison assumes you sell at the end of this period. Try a shorter stay as a second scenario.

2 · Purchase financing

Down paymentDollar amount, not a percentage. The model uses no more than the purchase price.Mortgage interest rateMortgage term in yearsBuyer closing costsPercentage of the purchase price, in addition to the down payment.Selling costsPercentage of the ending home value, deducted when the home is sold.

3 · Ownership costs

Annual property-tax rateAnnual percentage of the modeled home value; it changes as that value grows.Annual homeowners insuranceMonthly HOAAnnual maintenance reserveAnnual percentage of the modeled home value reserved for upkeep.

4 · Growth assumptions

Annual rent increaseAnnual home appreciationInvestment returnAnnual return on invested cash and monthly cost differences. This is an assumption, not a forecast.

Assumes fixed rates and costs, monthly investing, annual rent increases, and a sale at the end of the chosen period. Taxes and investment fees are excluded. Insurance and HOA stay fixed; taxes and maintenance follow home value. This model does not include mortgage insurance, tax deductions, renter insurance or tax on investment gains.

READY WHEN YOU ARE—

Compare two housing paths over the same time horizon, then review and save. Enter 0 for costs that do not apply.

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HOW TO USE THE RESULT

Rent versus buy is a timeline decision

Buying converts some payments into equity but adds transaction costs, maintenance, taxes, insurance, and concentrated property exposure. Renting can preserve flexibility and invest cash that would otherwise become a down payment. The expected holding period often matters more than the first monthly-payment comparison.

Why does the holding period matter?

Buying and selling costs are concentrated around the transaction. More years give appreciation and principal reduction additional time to absorb those costs.

Is rent throwing money away?

No. Rent buys housing and flexibility. Mortgage interest, taxes, insurance, maintenance, and transaction costs also do not become equity.

What assumption changes the answer most?

Home appreciation, investment return, maintenance, rent growth, and the actual time in the property can each flip the result. Stress-test all five.

OPTIONAL NEXT TESTS

Pressure-test the assumptions before acting on this result.

RELATED TEST

Rent vs. Buy Calculator

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Calculate, then save your plan.

Rent versus buy is a timeline decision

Why does the holding period matter?

Is rent throwing money away?

What assumption changes the answer most?

Pressure-test the assumptions before acting on this result.

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