Money
Rent vs Buy Calculator
Compare estimated monthly renting and homeownership costs.
Rent vs Buy Calculator result
Annual net-worth comparison
| Year | Home value | Mortgage balance | Renter investments | Buyer net after sale |
|---|---|---|---|---|
| 1 | $412,000.00 | $316,423.28 | $107,906.76 | $70,856.72 |
| 2 | $424,360.00 | $312,607.02 | $123,997.20 | $86,291.38 |
| 3 | $437,090.80 | $308,535.17 | $140,262.15 | $102,330.18 |
| 4 | $450,203.52 | $304,190.63 | $156,691.45 | $119,000.68 |
| 5 | $463,709.63 | $299,555.13 | $173,273.83 | $136,331.92 |
| 6 | $477,620.92 | $294,609.18 | $189,996.90 | $154,354.49 |
| 7 | $491,949.55 | $289,331.98 | $206,847.05 | $173,100.59 |
The renter begins by investing the down payment and buying closing costs they did not spend, then each month the lower-cost side invests the difference between rent and ownership costs. The buyer result includes home value less selling costs and mortgage balance plus any invested monthly savings. This scenario excludes tax deductions, rent deposits, renovations, utilities, moving costs and local transaction rules; returns and appreciation are not guaranteed.
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How this tool works
The comparison models rising rent, mortgage amortization, ownership costs, appreciation, transaction costs, sale proceeds, and monthly investment of the cash-flow difference over the same period.
Limits to know
Long-run results are highly sensitive to appreciation, rent growth, investment return, maintenance, transaction costs, taxes, and the holding period; none is guaranteed.