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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 $52,250 wealthier than buying

Cash spent on buying$221,164
Cash spent on renting$259,346
Final equity$278,599
Sale proceeds$231,249

“Cash spent” rows are nominal totals: dollars out minus dollars recovered, no time-value adjustment. The headline winner uses the discount rate to compound both sides, and that’s where the opportunity cost of capital lives.

Renting ahead by

$52,250

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)
$-52,250$-41,800$-31,350$-20,900$-10,450$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.