Rent vs Buy Calculator
Compare the total cost of buying vs renting to find your break-even year and best financial decision.
Buying Costs
Renting Costs
Shared Assumptions
How Rent vs Buy Comparison Works
Buying costs: Down payment + monthly mortgage + property tax + maintenance + insurance
Renting costs: Monthly rent + renter's insurance
Net worth comparison:
- Buyer: Home value (with appreciation) minus remaining mortgage balance
- Renter: Down payment invested and compounded at the investment return rate
Break-even year: The first year when buyer net worth exceeds renter net worth
Note: Transaction costs such as closing costs, agent commissions, and capital gains tax are not included and should be considered separately.
Renting costs: Monthly rent + renter's insurance
Net worth comparison:
- Buyer: Home value (with appreciation) minus remaining mortgage balance
- Renter: Down payment invested and compounded at the investment return rate
Break-even year: The first year when buyer net worth exceeds renter net worth
Note: Transaction costs such as closing costs, agent commissions, and capital gains tax are not included and should be considered separately.