Financial Calculators

Rent vs. Buy Calculator

A full rent-vs-buy model with transaction costs, ownership costs, tax assumptions, reinvested cash flow, payoff logic, and a year-by-year table.

Winner
Rent + Invest wins
by $2,603,087 more than buying.
Buying result
$11.1M
Rent + invest result
$13.7M

Home purchase inputs

Core purchase and mortgage assumptions.

$
%

$200,000 cash into property

%

Monthly mortgage = $4,542

%

Projected sale price: $3,243,398

yrs
yrs

Long-term outcome

Rent + Invest is ahead by $2,603,087 after 30 years.

Transaction & ownership costs

Grouped separately so depth is preserved inside this calculator.

%

$25,000

%

$0

%

$0

$
%

$194,604

%

$917 / month

$

$300 / month

%

$833 / month

$

Rent & market alternative

Rental path and alternate investment assumptions.

$
$
%
%

Custom return

0

Index presets use approximate 30-year annualized historical total-return averages with dividends reinvested. They are planning assumptions, not forecasts.

Ownership cost

Today's monthly cash waterfall for the buyer path.

Starting monthly cash before housing$10,000
Less monthly mortgage-$4,542
Less property taxes-$917
Less insurance-$300
Less maintenance-$833
Monthly ownership cost$6,592
Buyer cash left to invest today$3,408

This is a current-month view. The year-by-year table still uses the full model.

Advanced assumptions

Tax benefit assumptions.

%
$

Year-by-year comparison

Full yearly output for buyer vs. renter.

About this rent vs. buy calculator

This rent vs. buy calculator estimates whether renting and investing may outperform buying a home over a selected time period. It compares home equity after sale against a renter portfolio that invests upfront cash and any monthly cash flow advantage.

The model includes purchase price, down payment, mortgage rate, loan term, rent, rent inflation, property tax, insurance, maintenance, closing costs, selling costs, renovations, home appreciation, and market return assumptions.

How to interpret the result

A buying advantage means the estimated home equity and buyer surplus investment are ahead of the rent-and-invest alternative. A renting advantage means the estimated renter portfolio is ahead after the comparison period.

What to verify

Confirm local property taxes, insurance, HOA fees if applicable, closing costs, sale costs, loan terms, and realistic maintenance before relying on the estimate.