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Rent vs. buy calculator

Adjust any assumption — results update instantly.

After 10 years

Renting wins

Projected net worth is $34,380 higher if you rent and invest the difference.

No break-even: buying does not catch up with renting within 10 years.

Buyer net worth

$261,393

Sale proceeds $261,393

Renter portfolio

$295,773

Upfront cash + monthly savings, invested

Difference

−$34,380

Buyer minus renter (negative = renting ahead)

Net worth over time

Buyer: home value − selling costs − loan balance (+ any savings invested). Renter: investment portfolio.

Monthly ownership cost

First month. Taxes, insurance and maintenance rise with home value.

$3,272 /mo

vs. renting $2,417 /mo (rent + renter's insurance)

  • Principal$310
  • Interest$2,025
  • Property tax$413
  • Insurance$150
  • HOA$0
  • Maintenance$375

Principal vs. interest

Mortgage payments over 10 years. P&I: $2,335/mo.

Principal paid (becomes equity)
$52,916
Interest paid
$227,278
Remaining loan balance
$307,084

Cash out vs. true cost

Buyer cash outflow (incl. upfront)
$514,427
Buyer total cost (after selling)
$253,034
Renter total cost (rent + insurance)
$332,160

Total cost = money spent minus what you get back. Investment growth isn't subtracted here; it's in net worth.

What moves your result most

How the final difference changes if one assumption shifts, holding the rest steady.

  • Home appreciation (+1 point per year)+$49,455 toward buying
  • Mortgage rate (+1 point)−$46,740 toward renting
  • Current rent (+10%)+$44,073 toward buying
  • Investment return (+1 point per year)−$24,707 toward renting

Year by year

Year-by-year comparison of buying and renting
YearHome valueLoan balanceBuyer net worthRenter portfolioDifference
1$463,500$356,163$79,527$120,415−$40,889
2$477,405$352,059$96,701$137,809−$41,108
3$491,727$347,670$114,554$155,695−$41,141
4$506,479$342,975$133,116$174,085−$40,969
5$521,673$337,953$152,420$192,992−$40,572
6$537,324$332,581$172,503$212,430−$39,927
7$553,443$326,835$193,402$232,413−$39,012
8$570,047$320,689$215,155$252,955−$37,801
9$587,148$314,115$237,804$274,070−$36,266
10$604,762$307,084$261,393$295,773−$34,380

Estimates only. Results depend entirely on the assumptions above and do not predict future home prices, rents or investment returns. Not financial advice. Educational disclaimer