Rent vs Buy Calculator

Compare the long-term financial outcome of renting versus buying a home. Interactive chart, regional presets, no login required.

Property
Mortgage
Costs
Rent
Investment
Time Horizon
Renting wins
Monthly Mortgage (P&I)
$4,410/mo
Monthly Buying Cost (month 1)
$6,148/mo
Monthly Rent (month 1)
$2,800/mo
Total Buying Costs (7yr)
$540,721
Total Rent Paid (7yr)
$261,624
Final Home Equity
$578,681
Renter Portfolio
$636,106

Should You Rent or Buy?

The rent-versus-buy decision depends on more than just the monthly payment. This calculator models the full financial picture — mortgage principal & interest, property taxes, insurance, HOA, maintenance, home appreciation, rent inflation, and the opportunity cost of your down payment.

How the Model Works

Each month the calculator computes the total cost of owning (P&I + taxes + insurance + HOA + maintenance) and compares it to the cost of renting. The renter is assumed to invest their down payment in a diversified portfolio earning the specified return rate. Whenever buying costs more than renting in a given month, the renter also invests the difference.

At the end of each year the calculator snapshots buy wealth (home equity = appreciated home value minus remaining loan balance) and rent wealth (the renter's investment portfolio). The year where buy wealth first overtakes rent wealth is the break-even year.

Key Assumptions

  • Home appreciation and rent increases compound annually.
  • Property taxes and maintenance scale with the appreciated home value.
  • The renter's portfolio compounds monthly at the stated return rate.
  • Closing costs, realtor commissions, and tax benefits are excluded for simplicity.

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