Buy vs Rent Calculator

Compare buying and renting with mortgage, rent growth, appreciation, and alternative return assumptions.

Buy vs Rent Calculator

Compare buying and renting through cash flow, asset value, and alternative investment return.

Results update instantly
Monthly Mortgage Payment
12,478.45
Total Rent Paid
1,607,385.6
Buy Net Cost
-1,530,630.54
Rent Net Cost
-382,963.65
Buying Advantage
1,147,666.89

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What is this tool for?

This tool compares buying a home and renting through one scenario model.

It looks beyond the monthly payment and focuses on net cost across the holding period.

What do inputs mean?

Home price, down payment, financing rate, and term shape the ownership cash flow.

Rent, rent growth, and alternative return describe the renter scenario and opportunity cost.

Calculation logic

The buying scenario combines payments, transaction costs, ownership costs, and equity after sale.

The renting scenario compares rent paid with the future value of capital not used for purchase.

How to read the result

A positive buying advantage means buying is better under the selected assumptions.

A negative value suggests renting plus investing capital is stronger in that scenario.

Real-world example

Higher rent inflation can make buying more attractive for the same home price.

Higher alternative returns or weak home appreciation can shift the comparison toward renting.

Limitations

The model does not capture every local tax, maintenance surprise, moving cost, or loan fee.

Validate assumptions with bank offers, official rules, and professional financial advice before acting.