Buy vs. Rent Calculator

An apples-to-apples net-worth comparison: buying a home vs. renting and investing the difference.

Home & purchase

$
20%
6.5%
3%
One-time, % of home price
4%/yr

Ongoing ownership costs

1.1%/yr
% of home value per year
0.5%/yr
1%/yr
$ /mo
0%

Renting & investing

$ /mo
3%/yr
6%/yr
What the down payment + cost differences would earn if invested instead
6%
Agent + closing on sale, % of sale price

How long you stay

10 years
Verdict at your horizon
—
 

Net worth at horizon

If you buy
—
equity + investments
If you rent
—
invested portfolio
Break-even
—
buying overtakes renting

Breakdown

BuyRent

Both paths spend the same total each month; whoever's housing costs less invests the difference at your investment return. The renter also invests the cash the buyer sank into the down payment and closing costs.

Net worth over time

Estimates only — not financial advice. Results are extremely sensitive to the assumed home-appreciation and investment-return rates, which are guesses, not guarantees. Home appreciation is not risk-free, and investment returns carry market risk.

This model simplifies taxes (a single marginal rate applied to mortgage interest + property tax, assuming you itemize), ignores PMI on low down payments, rent deposits, and closing-cost financing, and assumes you reinvest all cost differences. Transaction costs, tax rules, and local markets vary widely.

Use it to build intuition about the levers — then confirm specifics with a qualified financial and tax professional.