Rent vs. Buy Calculator
Compare renting and buying the way that actually matters — by the net worth each path leaves you with after the years you plan to stay.
Buying comes out ahead by
$18,828
In net worth after 10 years
Break-even
Year 8
Owning, first month
$2,873
Renting, first month
$2,200
Net worth by path
- Buying
- Renting
View as table
Buying = home equity after selling costs, plus any monthly savings invested. Renting = the $92,000 you'd have spent upfront, plus any monthly savings, invested at 6%.
How it works
The math behind the numbers
- Buying net worth is the home's value minus selling costs and the remaining loan balance, plus any monthly savings versus renting, invested.
- Renting net worth is the down payment and closing costs a buyer would have spent, plus any monthly savings versus owning, invested at the investment return.
- Taxes, insurance, HOA, and maintenance grow with home appreciation; rent grows at the rent increase rate. Tax deductions are not modeled.
These estimates are for educational purposes and aren't financial, lending, or tax advice. Actual rates, costs, and loan terms vary — confirm the numbers with a licensed lender, title company, or tax professional before making decisions.
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