Rent vs buy calculator.
Is buying worth it for your stay? Compare both paths year by year, with real ownership costs, home value growth and what your cash could earn instead.
Net worth over time
Hover or tap the chart to see a year.
At the end of your stay
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How to use this and what the numbers mean.
The calculator follows two people who start with the same cash. The buyer spends it on the down payment and closing costs. The renter keeps it invested at the return you enter. Each month, whoever has the lower housing cost invests the difference, so the two paths stay comparable.
Buying costs here are principal and interest, property tax and maintenance (each a yearly percent of the home's value), homeowners insurance and HOA dues. Insurance grows with the home's value. Rent goes up once a year by the rent growth rate.
The buy line on the chart is what the buyer would walk away with if they sold at the end of that year: the home's value minus selling costs, minus the loan balance, plus anything they invested. The rent line is the value of the renter's investments. At year 0 the buyer is behind, because closing costs are already spent and selling costs would come off the price.
Break-even is the first full year when the buy line passes the rent line. Short stays tend to favor renting, because buying and selling costs need time to be earned back. Longer stays tend to favor buying when the home's value grows and the loan gets paid down.
Small changes move the answer a lot. Try a lower appreciation rate, a higher investment return or a shorter stay to see how sensitive the result is. Maintenance of about 1% of the value per year is a common rule of thumb, but older homes can cost more.
What is left out: income taxes on investment gains, the mortgage interest deduction, PMI, renters insurance and moving costs. Prices and rates change. Use this to frame the decision, then check the loan numbers with a licensed lender you choose.
Questions
How does this calculator compare renting and buying?
It starts both paths with the same cash. The buyer spends it on the down payment and closing costs, and the renter invests it. Each month, whoever has lower housing costs invests the difference. At the end of each year it compares what the buyer would net from selling the home with what the renter has invested.
What is the break-even year?
It is the first full year when the buyer's net worth passes the renter's. Before that, buying and selling costs outweigh the equity built. If the buyer never passes the renter within the years you chose, renting comes out ahead for that stay.
Why does buying start behind?
Closing costs are paid on day one, and selling costs come off the price at the end. Those costs take time to earn back through loan paydown and home value growth, which is why short stays often favor renting.
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