Rent vs. buy calculator
Compare what you would have after a number of years on each path, once selling costs and invested savings are counted.
Costs and assumptions
Buying comes out ahead after 7 years by
- Buying: sale proceeds plus invested savings
- $173,101
- Renting: invested cash and savings
- $165,347
- Buying
- Renting
With these assumptions, buying moves ahead in year 7.
Assumes a 30-year fixed loan. Whichever path costs less each month invests the difference; the renter also invests the down payment and purchase costs. Taxes, insurance, and dues stay constant. No tax effects, renters insurance, or moving costs. Appreciation and returns are not guaranteed.
Educational estimate only. Not a rate quote, loan offer, or approval. Rates shown are assumptions you can edit. Your numbers stay in your browser.
How this calculator works
The buying path counts the home’s value after selling costs, minus the remaining loan balance. The renting path invests the down payment and purchase closing costs instead.
Each month, whichever path costs less invests the difference. The result is the estimated wealth on each path at the end of each year.
Small changes in appreciation, rent growth, and investment return move the result a great deal. Try a cautious and an optimistic set of assumptions rather than relying on one.
Common questions
How long do I need to stay for buying to make sense?
Buying and selling both have costs, so short stays tend to favor renting. The chart shows the year, if any, where buying moves ahead with your assumptions.
What costs of owning are included?
The loan payment, property taxes, insurance, HOA dues, mortgage insurance, maintenance, purchase closing costs, and selling costs.
What is left out?
Tax effects, renters insurance, moving costs, and changes in tax or insurance bills over time. The result is an illustration, not a forecast.
A loan officer can walk through them with you. It costs nothing to ask.