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Housing Decision
Rent vs Buy Calculator: Compare Renting and Buying a Home
Compare renting versus buying with mortgage payment, down payment, rent growth, home appreciation, maintenance, property tax, selling costs, and investment return.
Scenario assumptions
Better estimated option
n/a
Buyer net worth
$0
Renter net worth
$0
Difference
$0
Compare long-term net worth, not only monthly payment.
How the comparison works
The renter invests the down payment and closing cost cash that would have been used to buy. Each month, the lower-cost option invests the monthly savings. The buyer also gets home equity at the end, after selling costs.
What can change the answer
- How long you stay in the home
- Mortgage rate and down payment
- Rent growth versus home appreciation
- Maintenance, taxes, and investment return
What rent vs buy compares
The calculator estimates the long-term difference between renting and owning over your selected time horizon.
- Renter path includes rent, rent growth, renters insurance, and invested cash.
- Buyer path includes mortgage, down payment, taxes, insurance, HOA, maintenance, appreciation, and selling costs.
- The result compares estimated net worth after the selected period.
Key assumptions to test
Small changes in local market assumptions can flip the result, so compare several scenarios.
- Change mortgage rate, down payment, and expected time in the home.
- Test rent growth against home appreciation.
- Compare investing the down payment versus building home equity.
How to interpret the result
A calculator result is a financial model, not a life decision by itself.
- Buying may make more sense if you stay longer and costs are stable.
- Renting may keep flexibility and preserve cash for investing.
- Location, job plans, repairs, and lifestyle matter too.
Related housing calculators
Use these pages to check the major parts of the rent or buy decision.
Rent vs Buy Calculator FAQ
Is it better to rent or buy?
It depends on home price, rent, mortgage rate, down payment, maintenance, taxes, appreciation, investment return, and how long you expect to stay.
What does the rent vs buy calculator compare?
It compares estimated renter net worth with estimated buyer net worth after the selected number of years.
Why include investment return?
Renters may be able to invest the cash not used for a down payment or ownership costs, so investment return makes the comparison more balanced.
How long should I stay before buying makes sense?
There is no universal answer. Higher closing costs and selling costs usually require a longer stay before buying becomes competitive.
Does this replace professional advice?
No. It is a planning model. Local taxes, repairs, financing terms, and personal goals can change the real decision.
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