Buy vs. Rent Calculator
Compare the long-term wealth impact of buying a home versus renting and investing the difference.
Home Purchase
Ongoing Costs (Buying)
Renting & Investments
Monthly P&I
Mortgage principal & interest
Total Monthly (Buy)
Incl. tax, insurance & maintenance
Monthly Rent
$701/mo cheaper to start
Net Worth Over 30 Years
- Buy
- Rent & Invest
How This Calculator Works
Buying path: Your $90,000 down payment goes into the home. Net worth equals home equity (appreciated value minus remaining loan balance) plus any monthly savings you invest when buying costs less than renting.
Renting path: That same $90,000 is invested in the market on day one. Each month, if buying costs more, the renter invests the difference. As rent increases over time, the renter's monthly surplus shrinks.
With these numbers, one path stays ahead throughout the entire 30-year window. Try adjusting the appreciation rate or investment return to find the crossover.
This model excludes transaction costs (agent commissions, closing costs), capital gains taxes on investments, and the mortgage interest tax deduction. Adjust the appreciation rate, rent increase, and investment return to match your local market.
Continue Your Journey
Mortgage & Refinance Calculator
Calculate monthly payments, see your full amortization schedule, and find out if refinancing makes sense at today's rates.
Try This ToolCompound Interest Calculator
See how your money grows exponentially over time through the power of compounding.
Try This ToolFinancial Independence Calculator
Calculate your FIRE number and plan your path to financial independence.
Try This Tool