Rent vs Buy Calculator
Should you rent or buy a home? Compare the total cost of renting vs buying over time, including equity, opportunity cost, and tax benefits.
Renting Costs
Buying Costs
Analysis Settings
Renter's alternative investment return
For mortgage interest deduction
After 10 years, Renting Wins By
$146,309.44
Total Renting Cost
Total Rent Paid$206,349.83
Investment Gains+$205,379.27
Net Cost-$79,529.45
Total Buying Cost
Mortgage Payments$212,374.86
Total Interest$169,748.01
Property Taxes$42,000.00
Maintenance$35,000.00
Closing Costs$10,500.00
Home Equity+$204,775.33
Net Cost$66,780.00
Year-by-Year Comparison
| Year | Total Rent Paid | Total Buy Cost | Home Equity | Renter Net Worth |
|---|---|---|---|---|
| 1 | $18,000.00 | $45,783.60 | $61,999.63 | $97,732.49 |
| 2 | $36,540.00 | $60,117.50 | $75,504.96 | $115,615.05 |
| 3 | $55,636.20 | $85,005.08 | $89,538.91 | $134,176.50 |
| 4 | $75,305.29 | $109,949.92 | $104,125.60 | $153,447.18 |
| 5 | $95,564.44 | $134,955.87 | $119,290.43 | $173,459.03 |
| 6 | $116,431.38 | $160,027.01 | $135,060.18 | $194,245.71 |
| 7 | $137,924.32 | $185,167.71 | $151,463.02 | $215,842.67 |
| 8 | $160,062.05 | $210,382.63 | $168,528.66 | $238,287.28 |
| 9 | $182,863.91 | $235,676.73 | $186,288.43 | $261,618.96 |
| 10 | $206,349.83 | $261,055.33 | $204,775.33 | $285,879.27 |
Renting vs Buying: Key Factors
The rent vs buy decision is one of the biggest financial choices you'll make. This calculator helps you compare the true cost of each option over time.
Factors Favoring Buying
- Home values appreciate over time
- Mortgage interest and property taxes may be tax-deductible
- Fixed-rate mortgages protect against inflation
- Building equity instead of paying a landlord
Factors Favoring Renting
- No maintenance or repair costs
- Flexibility to relocate
- Invest the down payment difference
- No exposure to housing market downturns
Disclaimer
This calculator is for informational purposes only and should not be considered financial advice. Consult with a qualified financial professional before making any financial decisions.