Compare where you would stand financially after renting versus buying, counting the costs most comparisons leave out.
Buying
$
%
%
% / yr
$
% of value / yr
$
% / yr
% of price
% of value
Renting
$
% / yr
Both
% / yr
years
After your stay
Better choice for these inputs
$0
Difference in net worth
$0
Net worth if you buy—
Net worth if you rent—
Owning cost, first month—
Rent, first month—
Break-even (buying pulls ahead)—
How this is calculated
Buying: each month costs principal and interest + property tax + insurance + maintenance + HOA; tax and maintenance grow with the home value at the growth rate you enter.
Renting: rent rises once a year. Both sides start with the same cash; whoever pays less each month invests the difference at your investment return.
Net worth when you leave: buyer = home value × (1 − selling costs) − loan balance + invested savings; renter = invested savings. Tax deductions are not modeled.
Both paths start with the same money. The buyer spends the down payment and closing costs; the renter invests that cash instead. Each month, whoever has the lower housing cost invests the difference. At the end of your stay the buyer sells: home value minus selling costs and the remaining loan balance, plus any invested savings. The renter keeps the investment account.
Owning costs include principal and interest, property tax, insurance, maintenance and HOA dues; tax and maintenance grow with the home's value. Rent rises once a year. Tax deductions are not included. Small changes in home value growth, rent increases or how long you stay can flip the answer, so try a few scenarios. See also how much house you can afford and closing costs.
Common questions
Why does how long I stay matter so much?
Buying and selling each carry large one-time costs. Staying longer spreads them over more years and gives equity and appreciation time to build.
Is rent money wasted?
Rent pays for housing, just as mortgage interest, property tax, insurance and maintenance do for owners. The fair comparison is total unrecoverable cost, which this calculator captures through net worth.
What return should I use for invested savings?
Use a rate you would realistically earn on money you did not put into a home, such as a savings account or a diversified investment. Returns are not guaranteed.