Rent Vs. Buy Calculator
Compare renting and owning across a chosen horizon with transaction costs, maintenance, taxes, appreciation and investment opportunity cost.
Financial Decision Lab
Rent Vs. Buy
Housing Opportunity Cost
Rent Vs. Buy Workbench
Inputs Recalculate Instantly
Alternative Housing Cost
Renting Case
Ownership Economics
Buying Case
Net Wealth At Horizon
Housing Readout
Modeled Base-Case Leader
Rent By $84,966
Compares sale proceeds with the renter's invested opportunity costs after 7.0 years.
Net Home Equity
$248,832
Renter Portfolio
$333,799
Average Owner Cost
$4,224
Monthly Before Tax Effects
Mortgage Balance
$415,915
Housing Market Range
Appreciation Sensitivity
Lower Appreciation
1.0%
Rent $163,033
Entered Appreciation
3.0%
Rent $84,966
Higher Appreciation
5.0%
Buy $3,119
Calculation Trace Show
Sale Proceeds - Mortgage Balance - Selling Costs$248,832Invested Upfront Cash + Monthly Cost Differences$333,799Absolute Difference In Ending Net Wealth$84,966DISCLAIMER: This tool provides educational planning estimates, not financial, investment, tax, legal, accounting, lending, or appraisal advice. Results depend on the assumptions you enter and may differ materially from actual outcomes. Rates, taxes, fees, market returns, benefits, and regulations can change. Consult qualified professionals before making consequential financial decisions.
What Is the Rent Vs. Buy Calculator?
The Rent Vs. Buy Calculator models the household balance-sheet effect of both housing paths, not just monthly rent versus a mortgage payment. Buying includes down payment, closing and selling costs, amortization, property tax, insurance, maintenance and appreciation. Renting includes rent growth and the potential investment return on cash not tied up in the home. The workspace shows low, base and high appreciation scenarios plus an estimated break-even horizon.
How It Works
Enter the home, mortgage and transaction assumptions, then add current rent, annual rent growth and an investment return for the renter's available cash. Choose a realistic time horizon and review cumulative housing cost and ending net position for both paths. Stress-test appreciation, maintenance, selling costs and the expected move date because those assumptions often drive the answer.
When to Use It
Use it before buying a primary residence, comparing relocation options, or deciding whether a short expected stay justifies the up-front and selling costs of ownership.
Frequently Asked Questions
- Why can buying lose over a short horizon?
- Closing costs, early mortgage interest and eventual selling costs are concentrated around the transaction. They have less time to be offset by principal paydown or appreciation.
- Does the calculator include nonfinancial benefits?
- No. Stability, control over the property, flexibility, maintenance responsibility and personal preferences still matter and should be evaluated separately.
- What investment return should renters use?
- Use a return appropriate to the actual portfolio, taxes, fees, risk and horizon. Do not assume every dollar of theoretical savings will be invested unless that behavior is realistic.
Last reviewed: 2026-06-27