How this rent vs buy comparison works
A fair comparison can't just stack rent against a mortgage payment — that ignores two big things. First, a buyer builds equity and benefits from appreciation, but pays large upfront and selling costs. Second, a renter can invest the money they didn't sink into a down payment. This calculator gives both paths the same budget, lets the renter invest every dollar of difference, and then compares the net worth each path leaves you with at the end.
Why "how long you'll stay" is the biggest lever
Buying carries heavy one-time costs (closing on the way in, ~6% to sell on the way out). Those costs are spread over however long you own. Stay two years and they crush the math; stay ten and appreciation plus equity usually win. That's why the single most important input is your time horizon.
When renting tends to win
- You'll move within a few years.
- Rents are low relative to home prices in your area.
- You'll genuinely invest the down payment instead of spending it.
When buying tends to win
- You'll stay well past the break-even point.
- Your area appreciates steadily.
- Buying isn't dramatically more expensive per month than renting.
Frequently asked questions
Is my data saved?
No. The entire comparison runs locally in your browser. Nothing is stored or sent anywhere.
What investment return should I use?
A common long-run assumption for a diversified portfolio is 5–7% before inflation. Use a figure you'd realistically achieve and stick to.
Does this include tax deductions?
No — mortgage interest deductions vary widely by situation and have become less impactful for most filers. The model stays conservative and excludes them.
For educational and estimation purposes only; not financial advice. Results are highly sensitive to the assumptions you enter and cannot predict real markets. Consult a qualified professional.