Rent vs. Buy Calculator
The rent-or-buy decision is the single largest financial choice most people make. This calculator compares total wealth outcomes — not just monthly payments — by modeling what happens to your money over time in both scenarios.
How it works: The buyer path models your mortgage payments, property taxes, insurance, maintenance, and equity buildup. The renter path assumes you invest the down payment plus any monthly savings (the difference between buying and renting costs) into the stock market. The breakeven year is when the buyer's net worth (home equity minus selling costs) surpasses the renter's investment portfolio.
Inputs
Renting wins
for the full 10-year period
Buyer Net Worth at Year 10
$256,070
Home: $584,759 | Equity: $291,155 | Sell costs: $35,086
Renter Portfolio at Year 10
$400,149
Down payment + savings invested at 7% return
Monthly Cost Comparison (Year 1)
Buy: $3,077/mo | Rent: $1,800/mo |
Diff: $1,277/mo
Monthly Cost Comparison (Year 10)
Buy: $3,320/mo | Rent: $2,349/mo |
Diff: $971/mo
Net Wealth Difference at Year 10:
Renting wins by $144,079
Assumptions & Notes
- Mortgage: 30-year fixed with standard amortization
- PMI: 0.5% annually when down payment is below 20%, removed at 80% LTV
- Buyer net worth includes home equity minus estimated selling costs (commissions, closing)
- Renter invests the down payment, closing costs, and any monthly savings at the specified return rate
- Tax benefits of homeownership are not modeled (most homeowners take the standard deduction)
- Default values are pre-filled with current U.S. market data from HomeStats