Rent vs. Buy Calculator
Compare the long-term financial impact of renting and buying a home.
Rental details
$
Year 5: $2,814/month
%
Home purchase details
$
$80,000
%
$12,000 paid upfront
%
P&I: $2,023/month
%
Ownership costs
$8,800/year
%
$1,400/year
%
$
$4,000/year
%
Assumptions
annual
%
if renting and investing
%
$32,254 at the selected horizon
%
Buyer acquisition costs are paid upfront and retained in the renter's portfolio for comparison. Estimated sale costs reduce buyer proceeds at each comparison year.
yr
Recommendation
Renting is better
Over 10 years, renting and investing the savings builds $42,566 more wealth.
Break-even point
Buying does not become more profitable than renting within 10 years.
Monthly cost (year 1)
Rent$2,500
Buy (all-in)$3,238
Difference$738 more to buy
Monthly cost (year 10)
Rent$3,262
Buy (all-in)$3,573
Net worth at year 10
Buyer net sale proceeds$234,029
Estimated sale costs$32,254
Buyer upfront cash$92,000
Renter portfolio$276,595
Advantage$42,566 renter
Cumulative cost over time
Total amount spent on housing over time
| Year | Renting | Buying |
|---|---|---|
| 1 | $30,000 | $130,855 |
| 2 | $60,900 | $170,106 |
| 3 | $92,727 | $209,765 |
| 4 | $125,509 | $249,843 |
| 5 | $159,274 | $290,353 |
| 6 | $194,052 | $331,308 |
| 7 | $229,874 | $372,722 |
| 8 | $266,770 | $414,608 |
| 9 | $304,773 | $456,980 |
| 10 | $343,916 | $499,854 |
Wealth accumulation
Buyer net sale proceeds after estimated sale costs compared with the renter investment portfolio
| Year | Buyer net sale proceeds | Renter portfolio |
|---|---|---|
| 1 | $70,857 | $107,576 |
| 2 | $86,291 | $123,722 |
| 3 | $102,330 | $140,462 |
| 4 | $119,001 | $157,822 |
| 5 | $136,332 | $175,828 |
| 6 | $154,354 | $194,509 |
| 7 | $173,101 | $213,894 |
| 8 | $192,604 | $234,014 |
| 9 | $212,901 | $254,903 |
| 10 | $234,029 | $276,595 |
Rent-versus-buy results are estimates based on the assumptions entered. Housing costs, investment returns, taxes, insurance, maintenance, and appreciation may differ.