Rent vs. Buy Calculator

See whether renting or buying leaves you better off over the time you plan to stay, counting every cost and what your money could earn instead.

Buying
$
$
$
Agent fees and seller closing costs.
Renting
$
$
What money not spent on the house could earn.
Fractions and decimals both work.
–
Better Off
Buyer’s net worth
Renter’s net worth
Owner cost, first month
Rent cost, first month
Buying breaks even after
Home equity at sale
Winner

Scenarios

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ScenarioYearsBuy NWRent NWBreak-EvenRemove

How to Compare Renting and Buying

This page gives the buyer and the renter the same starting cash and the same monthly budget. The buyer spends the cash on a down payment and closing costs; the renter invests it. Each month, whoever has the cheaper housing cost invests the difference. At the end, the buyer sells the home (paying selling costs and the loan balance) and we compare net worth.

Owner's monthly cost = mortgage + property tax + insurance + maintenance + HOA
Owner's net worth = home value − loan balance − selling costs + investments
Renter's net worth = invested down payment and closing costs + invested monthly savings

Worked Example

Tips

Buying usually wins the longer you stay, because buying and selling costs get spread over more years. This comparison ignores income taxes (the mortgage interest deduction and capital gains exclusions), which can favor buying for some households. Small changes in home price growth and investment return swing the answer, so try a few.