Rent vs buy calculator.
Compare home equity with investing the money saved by renting.
Rent vs buy inputs
Equal starting wealth and monthly budgets: renters invest the down payment and buying costs; whichever option costs less each month invests the difference. Buying exit value subtracts selling costs and mortgage debt. No tax deductions, investment taxes, rent deposit, moving costs or PMI are included. Constant assumptions are scenarios, not forecasts.
View detailed breakdown
| Year | Buying net value | Renting portfolio |
|---|---|---|
| 1 | $70,856.72 | $105,170.20 |
| 2 | $86,291.38 | $118,511.34 |
| 3 | $102,330.18 | $132,017.33 |
| 4 | $119,000.68 | $145,681.36 |
| 5 | $136,331.92 | $159,495.79 |
| 6 | $154,354.49 | $173,452.18 |
| 7 | $173,100.59 | $187,541.15 |
| 8 | $192,604.18 | $201,752.38 |
| 9 | $212,901.06 | $216,074.52 |
| 10 | $234,028.95 | $230,495.11 |
How this rent vs buy calculator works
The renter starts by investing the buyer’s down payment and purchase costs. Each month, whichever option has lower housing costs invests the difference. At exit, buying wealth includes home sale proceeds after selling costs and outstanding mortgage debt, plus any invested savings.
A worked example
If buying costs more each month, the renter’s investment portfolio receives the difference. If renting later costs more, the buyer invests the difference instead. Comparing both paths uses equal starting wealth and monthly budgets.
What can change the conclusion most?
Home appreciation, investment returns, rent increases, the length of stay and ownership costs all matter. Taxes, PMI, rent deposits and moving costs are omitted; this is a financial scenario, not a judgment about lifestyle preferences.
Calculations run on your device. Review your results before exporting or sharing them.