Rent vs Buy Calculator
Compare the long-run financial outcome of buying a home against renting and investing the difference, including appreciation, maintenance, taxes, selling costs and rent growth.
Your numbers
- Net worth if you buy
- $259,102
- Net worth if you rent
- $171,798
- Monthly mortgage payment (P&I)
- $2,023
Home equity is shown after 6% selling costs; renter starts by investing the down payment plus 3% closing costs.
- Buy
- Rent & invest
How the rent vs buy calculator works
The buyer builds equity (home value minus loan balance, less selling costs) while paying interest, taxes, insurance and maintenance. The renter invests the down payment and any monthly savings versus owning at the chosen return. We compare net worth at the end of your time horizon.
Example
Using the default inputs (Home price: $400,000; Down payment: 20%; Mortgage rate: 6.5%; Home appreciation / year: 3.5%; Tax, insurance & maintenance (% of price / yr): 2.2%; …), the calculator returns buying wins by of $87,304. Change any field above to see your own result and charts update instantly.
Good for these goals
Frequently asked questions
Is it always better to buy?
No. In expensive markets or for short horizons (under 5–7 years), renting and investing often wins because of transaction costs.
What assumptions matter most?
Home appreciation, investment return, how long you stay and the price-to-rent ratio drive most of the result.
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Estimates are for educational purposes only and are not financial, tax or legal advice. Results depend on your inputs and simplified assumptions; tax figures reflect 2026 federal rules and may differ from your situation. See our disclaimer. © 2026 FinanzCalc.