Rent vs Buy Calculator
Compare the true cost of renting versus buying a home over time — including equity, appreciation, selling costs and the return you could earn by investing instead.
Enter your home-purchase, rent and investment details, then compare to see which path leaves you wealthier — and the year buying overtakes renting.
Net worth over time — buying vs renting
How the rent vs buy comparison works
The honest way to compare renting and buying is not just "rent versus the mortgage payment" — it is to look at where you end up financially after a number of years. This calculator runs a month-by-month simulation of both paths. On the buying side it amortizes your mortgage, grows the home value at your appreciation rate, and adds property tax plus insurance and maintenance. On the renting side it grows your rent each year and, crucially, invests the money a renter does not tie up — the down payment, closing costs, and any month where owning costs more than renting — at your chosen investment return.
Net worth, not just monthly cost
At the end of your time horizon the calculator compares the two on net worth. A buyer's net worth is their home equity after selling costs, plus any side investments. A renter's net worth is their investment portfolio. Whichever is higher is the option that left you better off. It also finds the breakeven year — the point at which buying overtakes renting — because in the early years the upfront and selling costs usually keep renting ahead.
When renting can win
Buying is not automatically the better deal. If you move within a few years, if home prices barely rise, if ownership costs are high, or if you could earn a strong return investing instead, renting can come out ahead. Adjust the assumptions to match your own market and see how sensitive the answer is.
Estimate only — not financial advice. Results are highly sensitive to the appreciation, rent-growth and investment-return assumptions you enter, and exclude tax deductions and local rules.
Sources & methodology
We total the real cost of renting versus buying over your chosen period. Buying includes mortgage interest, taxes, insurance and maintenance, offset by equity built and home appreciation, minus selling costs; renting includes rent growth and the investment return you could earn on money not tied up in a deposit.
Sources: Standard mortgage amortization; time-value-of-money and opportunity-cost comparison.
Frequently asked questions
Is it better to rent or buy a home?
It depends on how long you stay, price versus rent, your mortgage rate, and what you could earn investing instead. This tool compares your projected net worth under both paths.
How does this rent vs buy calculator work?
It simulates each month of owning and renting — amortizing the mortgage, growing home value and rent, adding ownership costs, and investing any surplus — then compares final net worth.
What is the breakeven point for buying?
The year a buyer's net worth overtakes a renter's. Before it, renting is usually ahead because of large upfront and selling costs.
Why include an investment return?
Money used for a down payment could be invested instead. Counting that opportunity cost gives renting a fair comparison.
Does buying always win in the long run?
Often, but not always — high price-to-rent ratios, weak appreciation, high costs or strong investment returns can favor renting.
Is this financial advice?
No — it is an estimate based on your assumptions. Real outcomes vary with markets, taxes and circumstances.