The Rent vs. Buy Calculator settles the debate with numbers over the horizon you choose. It models owning costs and the equity you build (price growth minus loan balance) against renting and investing the difference — down payment plus any monthly savings — at your assumed return. The result is which path leaves you wealthier at the end.
Rent vs. Buy Calculator
Compare renting and buying over a chosen horizon: monthly costs, equity and appreciation vs investing the difference, to see which leaves you better off.
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Rent & assumptions
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About Rent vs. Buy Calculator
Features
- Side-by-side: Renting vs buying net worth at year N.
- Equity & growth: Appreciation minus loan and selling cost.
- Opportunity cost: Invests the down payment and savings.
- Horizon slider: See who wins at 5, 10, 15 years.
- Export: CSV, JSON or plain text.
How to Use
- Home: Price, down %, rate, term, taxes, insurance, maintenance, HOA.
- Rent: Monthly rent and rent growth.
- Assumptions: Appreciation, investment return, years, selling cost.
- Read: Net position for each path.
- Export.
Examples
Example 1 — Short horizon. 3 years favors renting; buying’s costs aren’t recovered.
Example 2 — Strong growth. 6% appreciation makes buying win long term.
Example 3 — High rent growth. Rising rent pushes renting’s cost up, helping buying.
Example 4 — Big down invested. Strong market returns make renting + investing competitive.
Example 5 — 15-year hold. Equity compounds; buying typically leads.
Benefits
- Decision clarity: See the wealth gap, not just monthly rent.
- Horizon aware: Know when buying overtakes renting.
- Opportunity cost: Accounts for investing instead of owning.
- Private: No account, no upload, nothing stored.
Frequently Asked Questions
What does this compare?
The net financial position after N years of renting versus buying, including equity, appreciation and investing the difference.
What is “invest the difference”?
The model assumes money not spent on ownership (down payment and any monthly savings) grows at your investment return rate.
How does appreciation factor in?
The home’s value grows at the appreciation rate; sale proceeds (minus balance and selling cost) become your equity.
Why include selling costs?
Realistic exit includes agent and closing costs; ignoring them flatters buying.
Is one always better?
No — it depends on horizon, rate, appreciation, rent growth and your investment return.
Does it capture intangibles?
No — stability, freedom, maintenance burden and pride of ownership are personal.
Is my data stored?
No. All calculation runs in your browser; nothing is uploaded, saved or logged.