Rent vs. Own Calculator

Should you rent or buy? It depends on a lot of assumptions. This tool lets you see exactly how each one moves the needle.

How this works

Both the buyer and the renter start with the same cash. The buyer puts the down payment into a home; the renter invests it at the investment return rate. Each month, both pay their housing costs — and whichever side pays less invests the difference. At the end of your time horizon, we compare net worth: home equity plus any side investments for the buyer, versus the renter's portfolio.

What to look for & how to use it

Type any value directly into the input boxes, or use the sliders to scrub. The chart and verdict update instantly.

  • The crossover year is when one side overtakes the other. If you'll be in the home less time than that, renting probably wins.
  • Appreciation vs. investment return is the single biggest lever. The buyer gets leverage — appreciation on the whole home, not just the down payment — so even when these rates are equal, buying often pulls ahead.
  • PMI activates automatically when your down payment is below 20% and drops off when you've built 20% equity. The status indicator under the PMI field tells you which mode you're in.
  • Not modeled: closing costs (~2–5% upfront), selling costs (~6% on the way out), and tax deductions on mortgage interest. Real-world results will skew slightly toward renting for short horizons and slightly toward buying for itemizers in high tax brackets.

Home Purchase

$
$
20.0% of home cost

Mortgage

%
%
Applies only when down payment < 20%; drops at 20% equity

Renting

$
%

Ownership Costs

%
$
$
%

Growth & Returns

%
%
%

Time Horizon

yr
Buying wins
by $X over renting
at year 30
crossover: year X
Buyer Net Worth
$0
home equity + investments
Renter Net Worth
$0
investment portfolio
Difference
$0
at end of horizon

Net worth over time

Where the lines cross is the year buying overtakes renting (or vice versa).

Year-end snapshot

Buyer

Home value$0
Loan balance remaining$0
Home equity$0
Investment account$0
Cumulative PMI paid$0
Total net worth$0

Renter

Initial investment (down payment)$0
Cumulative savings invested$0
Cumulative rent paid$0
Last month's rent$0
Total net worth$0
Assumptions used by this calculator: Both scenarios assume the same monthly housing budget — whichever party pays less each month invests the difference at the investment return rate. Property tax and maintenance scale with home value. Insurance and HOA grow with inflation. Rent grows at the rent growth rate. Mortgage is a fixed-rate fully amortizing loan. PMI applies only when the initial down payment is below 20%, is charged monthly as the annual PMI rate × current loan balance ÷ 12, and automatically drops off the month the loan balance reaches 80% of the original home price. The buyer's net worth at any year = home value − loan balance + investment account. Selling costs, closing costs, and tax deductions are not modeled.
Disclaimer: This calculator is for educational and informational purposes only. It is not financial, legal, tax, or investment advice. Real-world outcomes depend on many factors not captured here, including but not limited to: closing costs, selling costs, mortgage interest tax deductions, your personal tax situation, local market conditions, maintenance variability, and changes to any of the assumed rates over time. Past appreciation and investment returns do not guarantee future results. Always consult a qualified financial advisor, tax professional, and real estate professional before making major financial decisions.
Open source · View source on GitHub