Rent vs Buy Calculator
Compare the total cost of ownership against the total cost of renting over your expected stay.
- NOT FINANCIAL ADVICE
- EDUCATIONAL USE ONLY
- ESTIMATES ONLY
- INCLUDES OPPORTUNITY COSTS
Buying Path
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Renting Path
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Scenario Timeline
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The return you could get if you invested your down payment instead.
The Verdict
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Total Renting Cost
$0
Includes rent + opportunity cost
Total Buying Cost
$0
Includes mortgage, tax, fees - equity
Monthly Mortgage (P&I)
$0
Monthly Rent (Initial)
$0
Equity Gained after 10y
$0
Understanding the Calculation
Deciding whether to rent or buy is one of the biggest financial decisions you'll make. This calculator looks beyond just the monthly payment to provide a comprehensive comparison.
What's included in Buying Costs?
- Monthly Mortgage: Principal and interest payments.
- Property Taxes & Insurance: Estimated at standard annual rates.
- Maintenance: Estimated at 1% of the home value annually.
- Buying & Selling Costs: Closing costs when you buy and realtor commissions when you sell.
- Minus Equity: We subtract the remaining mortgage balance and add the estimated home appreciation to find your "Net Wealth" from the home.
What's included in Renting Costs?
- Total Rent Paid: Your monthly rent adjusted for annual increases.
- Opportunity Cost: This is the key difference. If you rent, you keep your down payment money. We calculate how much that money would have grown if invested at your "Alternative Investment Return" rate.