Rent vs Buy Calculator
Is it better to buy a home or to rent and invest the difference? This compares your net worth either way over the years you plan to stay — counting mortgage interest, property tax, maintenance, appreciation, and the opportunity cost of your down payment. See what really drives the answer in rent vs buy: the real math.
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Frequently asked questions
How does this compare renting and buying fairly?
It compares net worth after the years you choose. The buyer’s wealth is their home equity (value minus mortgage and selling costs). The renter invests the money buying would have tied up — the down payment, closing costs, and any monthly savings — at your assumed return. Whoever ends with more wins.
Why does “rent and invest the difference” do so well sometimes?
Buying has big costs renting doesn’t: mortgage interest, property tax, maintenance, and 5%-ish selling costs. If a renter consistently invests the down payment and the monthly savings at a solid return, that can outpace home equity — especially over short stays or when investment returns beat home appreciation.
What makes buying win?
Staying longer (so one-time buying/selling costs are spread out), home appreciation matching or beating investment returns, rent rising quickly, and the “forced savings” of paying down a mortgage. The longer you stay, the more buying tends to pull ahead.
Is this financial advice?
No. The result depends entirely on assumptions you set — future returns, appreciation, and rent growth are unknowable. Use it to see how sensitive the answer is, not as a prediction. Renting vs buying is also about lifestyle, flexibility, and stability, not just money.