Rent vs Buy Calculator
Compare long-term renting and buying outcomes using growth assumptions, ownership costs, equity, and investment alternatives.
Buy Scenario Net Worth
Rent Scenario Net Worth
Rent vs Buy Calculator With Net Worth Comparison
This tool compares renting and buying by simulating recurring costs, home equity, appreciation, and the investment growth of cash not spent on buying. It helps frame housing decisions over a defined time horizon.
How the Comparison Is Modeled
The buy path includes mortgage payments, property taxes, insurance, HOA, maintenance, PMI when applicable, and transaction costs. The rent path includes rent growth and assumes savings differences can be invested at the return you specify.
Why Time Horizon Changes the Result
Buying usually has significant upfront costs, while renting has lower commitment. Over longer periods, equity buildup and appreciation can favor buying, but short or uncertain horizons often favor renting.
Assumptions to Stress-Test
Small changes in appreciation, rent inflation, and investment returns can materially change the recommendation. Use conservative assumptions and test multiple scenarios before making large decisions.
Frequently Asked Questions
Is buying always better long term?
Not always. Outcomes depend on local prices, holding period, maintenance costs, and alternative investment returns.
Why include closing costs?
Closing costs are real transaction costs that can reduce ownership returns, especially if you move sooner than expected.
Should I include maintenance?
Yes. Maintenance and capital repairs are recurring ownership costs and should be modeled in realistic comparisons.
Does this predict the future?
No. It is a planning estimate based on assumptions. Actual market conditions and personal circumstances vary.