Rent vs Buy Calculator
Compare the long-term financial impact of renting versus buying a home
Rental Scenario
Home Purchase
Investment Assumptions
Monthly Payment Comparison
Monthly Rent (Year 1):$2,015
Monthly Ownership Cost:$2,906
Difference:$891 more expensive
Break-even Analysis
Renting appears more advantageous over the 10-year period
Final Results (Year 10)
Renting
Total Paid:$278,933Investment Value:$298,121Buying
Total Paid:$454,623Home Value:$537,567Mortgage Balance:$271,284Home Equity:$266,283Net Worth Comparison
Renting Net Worth:$298,121Buying Net Worth:$266,283Better Option:Renting(+$31,838)Year-by-Year Analysis
Key Assumptions & Notes
- Tax benefits of mortgage interest deduction are not included (varies by person)
- Transaction costs when selling are not included
- Assumes you stay in the home for the full analysis period
- Rental scenario assumes you invest the down payment + monthly savings
- Home appreciation and rent increases are assumptions and may vary
- Results are for comparison purposes and not financial advice