Rent vs. Buy Calculator

Compare the true long-term cost of renting versus buying. See when buying breaks even, how wealth accumulates under each scenario, and make an informed housing decision.

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Renting Scenario

Buying Scenario

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After 10 Years
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Buying: Net Wealth (10yr)
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Renting: Net Wealth (10yr)
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Breakeven Year
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How This Calculator Works

This tool compares two scenarios year by year. In the buying scenario, you build equity through mortgage payments and home appreciation, but pay interest, taxes, insurance, maintenance, and closing costs. In the renting scenario, you invest the down payment and the difference between buying costs and rent into a diversified portfolio.

The key insight is that buying isn't always better than renting. When home prices are high relative to rents, or when investment returns outpace appreciation, renting and investing the difference can build more wealth. The breakeven year shows when buying starts to win.

Frequently Asked Questions

Is it always better to buy than rent?
No. It depends on your local market, how long you plan to stay, mortgage rates, home appreciation, and what you would do with the money saved by renting. In expensive markets with high price-to-rent ratios, renting and investing can outperform buying for many years.
What investment return should I assume?
The default 7% represents the historical average real return of the US stock market. If you'd invest in bonds or savings accounts, use 3-5%. If you wouldn't invest at all, buying almost always wins over time.

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