Rent vs Buy Calculator
Compare the financial impact of renting versus buying a home
Buying Costs
$
$
20%
%
years
Range: 15 - 30
$
$
$
%
Annual
Renting Costs
$
%
%
If you invested instead
years
Range: 1 - 30
Renting is better
After 10 years, renting saves you approximately $47,297.24
Buying
Total cost paid$427,714.12
Home equity built$264,411.25
Net cost$163,302.87
Renting
Total rent paid$343,916.38
Investment value$227,910.75
Net cost$116,005.63
This calculator provides a simplified comparison. Actual results depend on many factors including tax implications, opportunity costs, lifestyle preferences, and local market conditions. Consider consulting a financial advisor for personalized advice.
Calculator Assumptions
- Appreciation: Home value grows at constant rate; actual markets fluctuate and can decline
- Investment return: Renter invests down payment difference; assumes consistent returns without volatility
- Tax benefits: Mortgage interest deduction not modeled; benefit depends on itemizing vs standard deduction
- Transaction costs: Closing costs (2-5%) and selling costs (6-10%) not included
- Maintenance: Homeowner costs assumed constant; actual expenses can be unpredictable
- Rent control: Not modeled; regulated markets may limit rent increases
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