Rent vs Buy Calculator
Finance & LoansCompare the long-term net financial wealth of buying a home versus renting and investing the down payment difference over 5 to 30 year horizons, factoring in appreciation, taxes, and maintenance.
Rent cash 202,289 vs buy net 97,682
About this calculator
The decision between purchasing real estate and renting is one of the most significant wealth decisions a household makes. Buying builds home equity through amortization and price appreciation, but incurs heavy upfront closing costs, property taxes, HOA dues, and ongoing maintenance.
Renting provides housing flexibility and frees up cash flow to invest in diversified index funds. This tool models both financial trajectories side-by-side to reveal the exact breakeven crossover year.
How It Works & Formula
The model compares cumulative net worth under both scenarios year-by-year: buyer net equity (property value with appreciation minus remaining loan balance minus selling costs) versus renter net equity (compounded investment of down payment savings and monthly payment differentials).
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