Rent vs. Buy Calculator
Buying isn't automatically better. Over a short stay, transaction costs and maintenance can outweigh equity and appreciation. This compares wealth at your planned sale date.
Renting wins by $13,602
- Net worth if you buy
- $187,810
- Net worth if you rent
- $201,413
- Buying breaks even
- not within horizon
| Year | If you buy | If you rent |
|---|---|---|
| 1 | $72,564 | $106,445 |
| 2 | $89,826 | $121,268 |
| 3 | $107,818 | $136,480 |
| 4 | $126,576 | $152,091 |
| 5 | $146,134 | $168,109 |
| 6 | $166,533 | $184,547 |
| 7 | $187,810 | $201,413 |
Assumes the renter invests the down payment and any monthly savings.
How it works
Both paths deploy the same upfront capital. The buyer sinks it into the house; the renter invests it and also invests the monthly gap between owning costs and rent. At the horizon the home is sold net of selling costs and remaining balance.
Frequently asked questions
What does 'break-even year' mean here?
It's the first year the buying path's net worth (home equity plus appreciation, minus what's still owed and selling costs) overtakes the renting path's net worth (the invested down payment and closing costs, plus every month's invested savings). Before that year, renting and investing the difference comes out ahead.
What happens to the money a renter doesn't spend on a down payment?
The calculator assumes the renter invests the down payment and closing costs upfront, then invests the monthly gap between what a homeowner pays (mortgage, tax, insurance, maintenance, HOA) and rent — both growing at your entered investment return.
Does the comparison account for home appreciation and rent increases?
Yes. Home value grows at your entered appreciation rate each year, and rent grows at your entered rent-inflation rate, so both sides reflect a realistic multi-year trajectory rather than today's snapshot.
Why might buying still make sense even if renting wins on paper?
The math only covers wealth. Buying also fixes your housing cost against rent increases, builds forced savings through principal payments, and comes with the intangible value of stability — factors this calculator doesn't try to price.