Rent vs Buy Calculator
Compare buying a home versus renting over your chosen horizon. Adjust mortgage, home cost, rent growth, and investment return assumptions to see which scenario comes out ahead.
Methodology: deterministic formulas based on your inputs only. No account data, no external rates, and no personalized advice.
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Compare Scenarios
Save your current inputs and compare Current + up to 2 saved scenarios.
Note: Saved scenarios are stored locally in your browser.
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| Compare | Scenario | Saved | Actions |
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Select up to 2 saved scenarios to compare with Current.
Chart
Solid: buy net · Dashed: rent net
Year-by-year schedule
| Year | Home Value | Loan Balance | Buy Net | Rent Net | Buy - Rent | Owner Paid | Renter Paid |
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How it works
Buying includes mortgage principal and interest, property tax, insurance, HOA, maintenance, and transaction costs. At each year, the buy side shows net proceeds after estimated selling costs and remaining loan balance.
Renting includes rent and renter insurance. The model also tracks an investment balance that starts with cash not used for buying and adjusts monthly by the difference between owner and renter costs.
This is a scenario calculator, not financial, tax, or legal advice.
Why time horizon is critical
Rent vs buy outcomes are highly sensitive to how long you expect to stay. Buying often has large upfront and exit costs, so shorter horizons can favor renting even when monthly owner costs look reasonable.
Longer horizons give more time for amortization and potential appreciation to offset transaction costs, but results still depend on assumptions.
Assumptions that most influence the comparison
The most sensitive inputs are mortgage rate, home appreciation, rent growth, maintenance, and investment return on unused cash. Small changes in these can shift the break-even point by years.
Use realistic ranges, not single-point optimism. Running conservative, base, and optimistic scenarios gives a more dependable decision frame.
How to read break-even and net outcomes
Break-even year is the first modeled year where buying matches or exceeds renting in net position under your assumptions. Buy - Rent shows the size of the advantage or disadvantage at each year.
Treat break-even as directional, not guaranteed. Job mobility, repairs, and market volatility can materially change real-world outcomes.
Frequently asked questions
Does this decide for me if renting or buying is better?
No. It helps compare assumptions quickly. Lifestyle, flexibility, local market risk, taxes, and maintenance uncertainty also matter.
What is break-even year here?
It is the first year where the buy net position is equal to or greater than the rent net position in your selected horizon.
Does this include tax deductions?
Not in this version. It keeps the comparison simple and easier to audit.