Why might the result differ from other calculators?

Assumptions for appreciation, rent growth, closing and selling costs, and owner expenses dominate the outcome. Small input changes can swing the comparison.

Are mortgage interest and property tax deductions included?

No. This version focuses on cash flows and a simplified ending sale—not itemized tax benefits or AMT.

What does net position mean here?

Roughly: total cash out for each path through the horizon, with the buy path crediting estimated sale proceeds after loan payoff and selling costs.

Rent vs Buy Calculator

Model rent growth, a fixed-rate mortgage, owner costs (taxes, insurance, maintenance, HOA), and a simple sale at the end of your comparison window. Opportunity cost on the down payment and detailed tax treatment are not modeled—use this to stress-test assumptions, not as a purchase decision by itself.

General

Compare renting (with invested down payment + closing) to buying (equity buildup and sale at the end). Optional investment return compounds the renter's starting balance monthly.

Time horizon (years)

Investment return on savings (% / year, optional)

Rent side

Monthly rent

Renters insurance ($ / month, optional)

Annual rent increase

Annual increase (%)

Buy side

Home price

Down payment %

Closing costs ($)

Mortgage interest rate (APR %)

Loan term

Property tax rate (% of home value / year)

Homeowners insurance ($ / year)

HOA ($ / month, optional)

Maintenance (% of home value / year)

Home appreciation (% / year, optional)

Selling costs (% of sale price, optional)

Rent path

Total rent + insurance paid: $263,724
Starting invested (down + closing you didn't put in the home): $118,000
Ending liquid (after rent from that pool): -$145,786
1st month all-in rent: $2,832
Avg monthly rent + insurance: $3,140

Buy path

Total cash out (down, closing, all owner costs): $750,737
Net sale proceeds (after loan & selling costs): $581,030
Net wealth after sale: -$169,708
Ending equity (before sale): $618,117
1st month owner cost (PITI + maint + HOA): $7,448
Avg monthly owner cost: $7,533
First P&I payment: $6,228

Net financial advantage & break-even

Buy vs rent (net at horizon): -$23,922 (Favors renting at the end of the horizon).

Monthly cost comparison: first month rent $2,832 vs buy $7,448 · average rent $3,140 vs buy $7,533.

Break-even: Month 2 (~year 1) — estimated home equity vs. renter invested balance cross.

Educational model: income taxes, itemized deductions, moving costs, PMI, and refis are not included. Renter cash flow assumes housing is paid from the invested down-payment + closing pool.

Total cash out comparison

Rent: cumulative rent + insurance. Buy: down, closing, and all monthly owner costs through the horizon.

Monthly cost (first 24 months)

Equity & wealth over time

Blue: home equity. Green: renter invested balance. Orange reference: first month buy equity crosses renter balance (if any).

Frequently asked questions

Why might the result differ from other calculators?: Assumptions for appreciation, rent growth, closing and selling costs, and owner expenses dominate the outcome. Small input changes can swing the comparison.
Are mortgage interest and property tax deductions included?: No. This version focuses on cash flows and a simplified ending sale—not itemized tax benefits or AMT.
What does net position mean here?: Roughly: total cash out for each path through the horizon, with the buy path crediting estimated sale proceeds after loan payoff and selling costs.