Years
This is the number of years we compare renting versus buying to estimate which option comes out ahead. For example, if you expect to stay in a home for about 10 years, enter 10.

Renting

$
%

Buying

$
%
%
Years

Assets if Renting

$0

Assets if Buying

$0

Advanced Options

Ownership Costs

%
$
%
$
* Represented as an annual percentage of home value. At 1%, the annual maintenance estimate of a $500,000 home would be $5,000.

Buying Transaction Costs

%
%

Market Assumptions

%
%

Tax Considerations

%

Understanding Your Results

We compare both scenarios, assuming you spend the same amount either way. When one option costs less each month, you invest the savings. Otherwise, the comparison wouldn't be accurate.

Buying Scenario

Building home equity over time may offset ownership costs and even offer tax benefits. Numbers in parentheses represent net costs, while the others represent gains.

Down Payment −$0
Buyer Closing Costs −$0
Mortgage Interest −$0
Property Taxes −$0
Insurance −$0
Maintenance −$0
Home Value at Sale $0
Remaining Mortgage −$0
Seller Closing Costs −$0
Net Home Equity $0
Assets if Buying $0

Renting Scenario

Home equity isn't the only way to build wealth. The Starting Investment value represents the money you would have spent when first buying a home (down payment and closing costs) based on your inputs. Use Advanced Options above to modify your return.

Starting Investment $0
Total Rent Paid −$0
Investment Balance $0
Assets if Renting $0

The "Invest the Difference" Concept

Each month, the rent-versus-buy option with the lower housing cost invests the difference (you can change the investment and home equity growth settings under Advanced Options). This approach ensures a fair comparison since each scenario uses a similar amount of money.

Owner's Investments

Starting investment: $0

Year
Monthly Rent
Monthly Owner Cost
Monthly Investment
Tax Refund
Year-End Balance
Home Equity
Highlighted rows show years when one option cost less than the other. The savings is invested.

Renter's Investments

Starting investment: $0 (down payment plus closing costs)

Year
Monthly Rent
Monthly Owner Cost
Monthly Investment
Year-End Balance

 Calculators