Rent vs Buy calculator
Compare buying and renting with invested monthly savings, a net worth chart, and a year-by-year table.
Rent vs Buy
Compare estimated net worth from buying a home or renting and investing the monthly savings.
Updates as you adjust- What it is
- A side-by-side estimate of where you could end up after a set number of years if you buy a home or keep renting. Both paths start with the same cash and the same monthly housing budget: whichever path costs less each month invests the difference. Home price growth, rent increases, and investment returns are assumptions you choose, not forecasts.
- How to use
- Pick how many years to compare and enter the home price. Choose cash or financed; if financed, add the down payment, mortgage rate, and loan term. Add the costs of owning: closing costs, HOA, property tax, and maintenance, then choose whether the renter also pays HOA and property tax. Enter the monthly rent you'd pay instead and how much it might rise each year. Set assumed home price growth and investment return, then change one input at a time to see what moves the result.
- What the result shows
- Estimated net worth for each path at the end of the period: for the buyer, the home's value minus what's left on the loan plus any money invested; for the renter, the starting cash plus monthly savings, invested. It also shows which path finishes ahead, by how much, and the first year buying pulls even and stays ahead. Selling costs, insurance, taxes on investments, and inflation are not included.
Illustrative example — replace these inputs with your own.
Share a link with these inputs to reopen this estimate.
Your estimate
Which path finishes ahead
Buying finishes about $35,880.45 ahead after 20 years under these assumptions.This shows which path finishes with more and by how much ($35,880.45); try changing the rent, price growth, or return to see how sensitive the gap is.
Results are sensitive to rates, rent growth and how long you stay; try other assumptions.
- Buyer net worth
- $577,262.32
After 20 years, buying leaves an estimated $577,262.32: the home's value minus the remaining loan, plus anything invested along the way; compare it with the renter's total.
- Renter net worth
- $541,381.87
After 20 years, renting leaves an estimated $541,381.87 from investing the starting cash and any monthly savings; compare it with the buyer's total.
- Year buying starts to stay ahead
- Year 11
Buying catches up in year 11 and stays ahead through year 20; compare that with how long you expect to stay.
- Starting cash for both paths
- $92,000.00
Both paths start with $92,000.00: the buyer spends it on the down payment (or full price) and closing costs, the renter invests it.
- First mortgage payment
- $2,022.62
Your estimated first monthly loan payment (principal and interest only) is $2,022.62; insurance and other charges would be extra.
The chart traces both paths year by year; in year 20, buying is at $577,262.32 and renting at $541,381.87.
Year-by-year comparison
The table lists each year's home value ($722,444.49), loan balance ($178,128.90), buyer investments ($32,946.73), and both net worths so you can see where the paths cross.
| Year | Buyer net worth | Renter net worth | Home value | Outstanding loan | Buyer investments |
|---|---|---|---|---|---|
| 0 | $80,000.00 | $92,000.00 | $400,000.00 | $320,000.00 | $0.00 |
| 1 | $95,576.72 | $107,192.70 | $412,000.00 | $316,423.28 | $0.00 |
| 2 | $111,752.98 | $122,864.06 | $424,360.00 | $312,607.02 | $0.00 |
| 3 | $128,555.63 | $139,030.08 | $437,090.80 | $308,535.17 | $0.00 |
| 4 | $146,012.89 | $155,707.38 | $450,203.52 | $304,190.63 | $0.00 |
| 5 | $164,154.50 | $172,913.19 | $463,709.63 | $299,555.13 | $0.00 |
| 6 | $183,011.74 | $190,665.42 | $477,620.92 | $294,609.18 | $0.00 |
| 7 | $202,617.56 | $208,982.64 | $491,949.55 | $289,331.98 | $0.00 |
| 8 | $223,006.66 | $227,884.14 | $506,708.03 | $283,701.37 | $0.00 |
| 9 | $244,215.61 | $247,389.96 | $521,909.27 | $277,693.66 | $0.00 |
| 10 | $266,282.95 | $267,520.94 | $537,566.55 | $271,283.60 | $0.00 |
| 11 | $289,249.29 | $288,298.71 | $553,693.55 | $264,444.26 | $0.00 |
| 12 | $313,157.49 | $309,745.78 | $570,304.35 | $257,146.86 | $0.00 |
| 13 | $338,304.52 | $332,137.33 | $587,413.49 | $249,360.75 | $251.78 |
| 14 | $365,387.91 | $356,147.56 | $605,035.89 | $241,053.19 | $1,405.21 |
| 15 | $394,549.68 | $381,893.50 | $623,186.97 | $232,189.25 | $3,551.96 |
| 16 | $425,942.04 | $409,500.61 | $641,882.58 | $222,731.68 | $6,791.15 |
| 17 | $459,728.19 | $439,103.44 | $661,139.05 | $212,640.72 | $11,229.86 |
| 18 | $496,083.05 | $470,846.26 | $680,973.22 | $201,873.95 | $16,983.77 |
| 19 | $535,194.10 | $504,883.78 | $701,402.42 | $190,386.11 | $24,177.78 |
| 20 | $577,262.32 | $541,381.87 | $722,444.49 | $178,128.90 | $32,946.73 |
How this works
These are the simplifications behind the estimate (fixed rates, no selling costs, no inflation); read them before relying on the comparison. All rates are illustrative and constant. Mortgage interest and investment returns use the nominal annual rate divided by 12. Investments earn returns before month-end deposits. The renter initially invests the down payment plus closing costs (or the full price plus closing costs for a cash purchase). Each month, the less expensive path invests the entire cost difference. Buying costs include the full mortgage payment, HOA, annual property tax divided by 12, and maintenance. Property tax is a fixed annual dollar amount; HOA also stays fixed. When renter HOA and property tax are enabled, renting also includes those same fixed amounts: monthly HOA and annual property tax divided by 12. Maintenance uses the home value at the start of each year. Home appreciation and rent increases occur at each year-end. Buyer net worth includes the home minus the loan plus accumulated investments. Closing costs are spent and not recovered. Both paths use equal starting capital and the same monthly budget. Inflation, insurance, other mortgage charges and moving costs are excluded. The model deducts neither taxes on investment returns (such as taxes on interest, dividends and capital gains) nor home-selling costs. Leaving out investment taxes tends to favor renting and investing. An absolute net worth difference below 5% of the starting home price is treated as practically a tie; excluded costs, such as selling costs, could change which path comes out ahead. The crossover is the first completed year buying equals or exceeds renting and stays there through the comparison period; it makes no claim about later years.
Educational estimates, not financial advice.
Content is for information and education and is not financial advice. Financial disclaimer.