Rent vs. Buy Calculator
Should you rent or buy? Compare the true long-term cost of each path.
Holding period
Buying
Advanced AssumptionsUsing typical assumptions unless adjusted>
Monthly Cost Comparison
Renting
$5,025.00/mo
Rent$5,000.00
Renter's insurance$25.00
Buying
$6,879.74/mo
Mortgage (P&I)$4,796.40
Property tax$1,000.00
Insurance$250.00
Maintenance$833.33
$1,854.74/mo more than renting
Your Results After 30 Years
HOME
Buying comes out ahead by
$1,366,892.77
after 30 years
Based on your assumptions
Renting
Total Rent Paid$2,922,684.42
Rent + Insurance + Fees & Moving = Total
$2,913,684.42 + $9,000.00 + $0.00 = $2,922,684.42
Investment Account$982,903.75
Capital Invested + Monthly Savings + Growth = Account
$220,000.00 + $0.00 + $762,903.75 = $982,903.75
$220,000.00 invested at 5% grew over 30 years
Net Financial Position- $1,939,780.67
Investment Account - Total Rent + Deposit = Net Position
Buying
Total Cash Contributed$2,882,319.58
Down Payment + Closing Costs + Monthly Payments = Total
$200,000.00 + $20,000.00 + $2,662,319.58 = $2,882,319.58
Cash Recovered at Sale$2,309,431.68
Home Value - Selling Costs - Remaining Loan = Cash Back
$2,456,842.21 - $147,410.53 - $0.00 = $2,309,431.68
Net Financial Position- $572,887.90
Cash Recovered - Total Contributed = Net Position
Negative = housing cost more than you recovered at sale
Where Your Money Went (Buying)
Interest$926,705.51
Taxes$360,000.00
Insurance$90,000.00
Maintenance$485,614.07
Selling Costs$147,410.53
Principal$800,000.00
Appreciation$1,456,842.21
Principal + Appreciation build your wealth.
Everything else is the cost of owning.
Rent net position- $1,939,780.67
Buy net position- $572,887.90
Difference$1,366,892.77 in favor of buying
Net Financial Position Over Time
The buy line reflects home equity minus all costs; the rent line reflects the investment account minus rent paid.
$170.1K-$357.4K-$884.8K-$1.4M-$1.9M
0123456789101112131415161718192021222324252627282930
Buy - net cost of housing Rent - net financial position
What Happened Here
Buying costs $1,854.74 more per month than renting at the start.
Of your total mortgage payments, $926,705.51 went to interest. The home appreciated by $1,456,842.21 over 30 years.
In this scenario, buying comes out ahead based on your current assumptions. buying pulled ahead around year 13.3.
What Would Change This Result?
To make renting outperform, one or more of these would need to change:
If you moved after just 5 years
Renting would be $246,776.94 aheadIf appreciation were only 2%
Buying advantage narrows to $844,407.11If mortgage rate were 7.5%
Buying advantage narrows to $1,079,860.50Frequently Asked Questions
Should I rent or buy a home?+
It depends on your timeline, cash position, and local market conditions. This calculator shows the tradeoff over time based on your assumptions.
How does this rent vs. buy calculator work?+
It compares ongoing renting costs against buying costs, equity buildup, and projected home value growth to estimate a net financial position.
What is the break-even point for buying?+
The break-even point is when buying and renting have the same net financial outcome. After that point, one strategy begins to outperform the other.
What costs are included in the buying calculation?+
Mortgage principal and interest, property tax, homeowners insurance, maintenance, closing costs, and estimated selling costs are included.
What is opportunity cost in rent vs. buy?+
Opportunity cost is what your down payment and upfront buying costs could have earned if invested elsewhere instead of being tied to the home.
Is buying always better in the long term?+
Not always. Slower appreciation, higher rates, or shorter holding periods can make renting financially stronger in many scenarios.
How does the holding period affect the result?+
Longer holding periods typically give appreciation and principal paydown more time to offset upfront and transaction costs.
What is an interest-only mortgage?+
An interest-only mortgage lets you pay only interest for a set period. Payments are lower at first, but principal is not reduced during that phase.
Disclaimer: This calculator is for educational purposes only and does not constitute financial advice. Results depend on assumptions that may not reflect actual market conditions. Tax benefits, PMI, and local regulations are not included. Consult a qualified financial advisor for personalized guidance.