Rent vs. Buy Calculator
Compare the long-term financial outcome of renting versus buying a home, factoring in appreciation, costs, and opportunity cost.
+ Assumptions (appreciation, returns, costs)
After 10 years, financially better to
Buy
by about $57,951.30 in net worth
Buying net worth
$296,054.32
Home value − remaining loan
Renting net worth
$238,103.02
Down payment + savings, invested
How the Rent vs. Buy Calculator works
The calculator simulates both paths month by month over your chosen time horizon: buying (mortgage paydown, property tax, insurance, maintenance, and home appreciation) and renting (rent increases, with your down payment and any monthly savings invested at your expected return). At the end of the horizon, it compares projected net worth under each scenario.
Frequently asked questions
How is "net worth" compared between renting and buying?
For buying, it's your home's projected value minus your remaining mortgage balance. For renting, it's your down payment and monthly savings (whenever renting costs less than buying) invested and grown at your assumed investment return.
Why would renting ever beat buying financially?
If home appreciation is modest and investment returns are strong, the money you'd otherwise tie up in a down payment and ongoing homeownership costs can grow faster when invested instead — especially over shorter time horizons.
What's not included in this comparison?
Mortgage interest tax deductions, renter's insurance, moving costs, and lifestyle factors like stability or flexibility aren't factored in — this is a purely financial estimate.