Rent vs Buy Calculator

Should you rent or buy?

If you buy
TERM
$
$
%
$
% / yr
$/ yr
$/ mo
% / yr
% / yr
%
If you rent
$/ mo
%
$/ yr
How long & how to compare
%
%

At year 7

Rent

Renting leaves you $50,493 wealthier than buying

Total spent (buy)$219,743
Total spent (rent)$187,863
Final equity$278,599
Sale proceeds$231,249

Renting ahead by

$50,493

at year 7, after sale

Break-even year

—

renting wins over horizon

Home equity at horizon

$278,599

paper equity (pre-sale)

Net sale proceeds

$231,249

after 7% selling costs

Opportunity portfolio

$189,482

$118,000 grown at 7%

Net advantage of buying (vs renting)
$-50,493$-40,395$-30,296$-20,197$-10,099$0Yr 0Yr 1

Above the dashed line, buying is the better financial choice at that horizon. Below it, renting wins. The line factors in down payment + closing costs (year 0 disadvantage for buyers), annual carrying costs after the mortgage interest tax deduction, the 7% opportunity cost on the down payment, home appreciation, and selling costs at the assumed sale year.