Compare renting and buying over the years you expect to stay. Include mortgage payments, ownership costs, rent increases, home appreciation, upfront costs, and the potential return from investing money not used to buy.
Compare estimated net worth over time • Break-even estimate • Annual or monthly scheduleYour comparison
Net-worth comparison
Buying equity is estimated home value minus the mortgage balance and selling costs. The renting scenario invests the upfront funds and any monthly cost difference.
Cost and net-worth schedule
| Period | Home value | Mortgage balance | Buyer net worth | Renter net worth | Buyer monthly cost | Rent monthly cost |
|---|
How the rent vs. buy calculator works
This comparison models the financial value of renting or buying over your selected stay period. It includes mortgage principal and interest, home appreciation, taxes, insurance, upkeep, mortgage insurance, rent increases, transaction costs, refundable deposits, and investment returns on available cash and monthly cost differences.
How net worth is estimated
- Equal starting funds: both scenarios begin with the larger of the cash needed to buy or rent. Cash not used upfront is invested, making the comparison fair even when renting requires more upfront cash.
- Buying: estimated home value less the remaining mortgage and selling costs, plus any modeled investments from months when owning costs less.
- Renting: investment value of funds not used for the down payment and purchase costs, plus modeled savings from months when renting costs less and the assumed refundable security deposit.
What does the break-even stay mean?
It is the first modeled month when the buyer’s estimated net worth reaches or exceeds the renter’s. The result depends on your assumptions for home appreciation, investment return, rent increases, and ownership costs.
What assumptions should I enter?
Use estimates that fit the location and property you are considering. Include realistic property taxes, insurance, maintenance, closing costs, rent increases, and investment returns. Try several scenarios because small assumption changes can affect the result.
What do total cash outflows mean?
They show cash paid during the comparison, including upfront amounts. They are not the same as unrecoverable costs: mortgage principal builds equity, and the rental security deposit is treated as refundable.
What is not included?
This general comparison does not model tax deductions, mortgage rate changes, utilities, investment taxes or fees, relocation costs beyond the amount entered, or local rules. It cannot account for personal preferences, housing stability, or the value of flexibility.
This is an estimate for planning. It does not predict home values or investment returns and is not financial advice.