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Rent vs Buy Calculator
Compare the true cost of renting versus buying a home over time
Renting is better
Over 7 years, you could save $218,901
Net Cost (Buying)
$160,899
Net Cost (Renting)
-$58,002
Buying Details
20%
$80,000
Renting Details
3%
Time Horizon & Investments
7 years
7%
Expected return if down payment was invested instead
Monthly Cost Breakdown (Buying)
Total: $2,881/month
Net Worth Over Time
Comparing equity building vs investment growth
Final Home Value
$491,950
Home Equity Built
$173,101
Total Rent Paid
$185,299
Renter Investment Value
$243,301
Things to Consider
Reasons to Buy
- - Build equity over time instead of paying a landlord
- - Lock in monthly payments (fixed-rate mortgage)
- - Tax deductions on mortgage interest and property taxes
- - Freedom to renovate and customize your space
- - Potential appreciation in home value
Reasons to Rent
- - Flexibility to move for job opportunities
- - No maintenance or repair responsibilities
- - Lower upfront costs (no down payment needed)
- - Invest the difference in stocks/bonds
- - No risk of home value depreciation
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