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Rent vs. Buy Calculator

Most rent-vs-buy calculators quietly skip the opportunity cost of your down payment or maintenance. This one doesn't. See the real net cost of each path.

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Net cost of renting
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Net cost of buying
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Over your stated horizon

How this is calculated
RentingTotal rent paid (with annual growth), minus what the down payment and closing costs would have earned invested instead
BuyingMortgage interest + PMI + property tax + maintenance/insurance + closing costs to buy and sell, minus home appreciation. Principal payments aren't counted as a cost, since they come back as equity.
How I think about this

We rent right now because flexibility is worth more to us at this stage than owning is. Run a short horizon above and you can see why: the transaction costs never get a chance to be absorbed. We plan to buy again once we know we are staying put, and the payment is a real part of that. Rent resets every year, while the principal and interest on a fixed mortgage stay put with you.

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Renting isn't throwing money away Read why renting is often the financially rational choice, not a failure to buy.
Read the article →

This model assumes a fixed-rate mortgage and uses the term, PMI rate, and closing costs on purchase and on sale entered above, including the agent commission when selling. PMI is charged only when the down payment is under 20%, until the loan balance reaches 78% of the purchase price. It does not account for tax deductions on mortgage interest or property tax, or taxes on investment gains, all of which can shift the result. Home appreciation, rent growth, and investment return are user-adjustable assumptions, not projections or guarantees; historical averages vary by market and time period. This calculator is for educational purposes only and does not constitute financial, investment, or tax advice. Consult a licensed financial advisor or CPA about your specific situation.