Rent vs Buy Calculator
An honest comparison. Buying isn't always cheaper; the opportunity cost of a down payment is real.
After 10 years
Recommendation
—
Buy: home equity
$0
Rent: investment balance
$0
Monthly mortgage
$0
Total mortgage interest
$0
Total rent paid
$0
Final home value
$0
Why this isn't simple
"Rent is throwing money away" is wishful thinking. Mortgage interest, property tax, maintenance, insurance, and the opportunity cost of your down payment are all also "money away" — they don't build equity.
What this calculator does:
- Buying: principal + interest + tax (1.1%) + maintenance (1%) + insurance (~$1,500/yr) + selling costs (7%) when you exit.
- Renting: rent paid + the down payment + monthly savings invested at your alternative return.
Sensitive inputs
Three things swing the answer most:
- Investment return — at 7%+, renting and investing the difference often wins.
- Holding period — selling costs and closing costs are amortized over the years you own. Short horizons (<5 yr) almost always favor renting.
- Home appreciation — historic US average is ~3% (matching inflation). Local markets vary wildly.