Calculator Tools
Rent vs Buy Calculator
Compare the lifetime cost of buying versus renting a home, with break-even year, equity, and a full year-by-year breakdown.
Verdict after 10 years
Renting wins by $99,331.9
If you stay for the full 10 years, renting costs $99,331.9 less than buying over that period. Buying does not break even with renting within the horizon you set.
Monthly mortgage (P+I)
$2,334.95
Loan: $360,000 at 6.75% / 30 yr
Up-front cash to buy
$103,500
Down $90,000 + closing $13,500
Home value after 10 years
$604,762.37
Equity if sold: $261,393.03
Break-even year
Never within horizon
Loan not paid off within horizon
Buying net cost
$248,690.62
Total cash out (down + closing + all yearly costs over 10 years):
$510,083.65
Minus sale proceeds: $568,476.63, minus remaining loan: $307,083.6
Renting net cost
$149,358.72
Total rent + renters insurance over 10 years:
$332,559.72
Minus portfolio gain from investing the down payment + monthly differences: $183,201
Year-by-year breakdown
| Year | Buy: spending | Buy: interest | Loan balance | Home value | Rent paid | Renter portfolio | Net diff (rent - buy) |
|---|---|---|---|---|---|---|---|
| 1 | $39,044.44 | $24,182.74 | $356,163.31 | $463,500 | $28,800 | $119,714.44 | -$50,192.18 |
| 2 | $39,375.19 | $23,915.6 | $352,059.47 | $477,405 | $29,664 | $136,368.49 | -$59,142.89 |
| 3 | $39,715.86 | $23,629.86 | $347,669.9 | $491,727.15 | $30,553.92 | $153,472.54 | -$67,316.48 |
| 4 | $40,066.75 | $23,324.23 | $342,974.68 | $506,478.96 | $31,470.54 | $171,037.11 | -$74,675.35 |
| 5 | $40,428.17 | $22,997.31 | $337,952.55 | $521,673.33 | $32,414.65 | $189,072.85 | -$81,179.78 |
| 6 | $40,800.43 | $22,647.63 | $332,580.74 | $537,323.53 | $33,387.09 | $207,590.57 | -$86,787.83 |
| 7 | $41,183.86 | $22,273.6 | $326,834.9 | $553,443.24 | $34,388.71 | $226,601.16 | -$91,455.22 |
| 8 | $41,578.8 | $21,873.53 | $320,688.99 | $570,046.54 | $35,420.37 | $246,115.66 | -$95,135.14 |
| 9 | $41,985.58 | $21,445.6 | $314,115.16 | $587,147.93 | $36,482.98 | $266,145.2 | -$97,778.13 |
| 10 | $42,404.56 | $20,987.88 | $307,083.6 | $604,762.37 | $37,577.47 | $286,701 | -$99,331.9 |
Net diff column shows rent net cost minus buy net cost. Positive (green) means buying is winning at that year. Negative (amber) means renting is winning.
How the comparison works
Each year both sides spend on housing. The renter also has the buyer's down payment and closing costs as an alternative investment that grows at the chosen return rate. Whichever side has the smaller yearly cash outflow gets credited back the difference in the investment portfolio. After 10 years the buyer's position is the cumulative cash spent minus what is left after selling the home (sale price net of selling costs, minus remaining loan). The renter's position is the cumulative rent paid minus the portfolio gain. The side with the lower net cost wins.
How to use
- Pick a preset to load a realistic scenario, or start from the defaults and edit each number.
- Set the buying side: home price, down payment percent, mortgage rate, loan term, property tax, home insurance, maintenance, closing costs, selling costs, and yearly home appreciation.
- Set the renting side: current monthly rent, the yearly rent increase you expect, and renters insurance.
- Set the shared assumptions: the investment return on the down payment alternative, the number of years you plan to stay, and (optionally) whether to apply mortgage tax savings at your marginal rate.
- Read the verdict card for the winner and margin, then the four stat cards for monthly payment, up-front cash, home value at horizon, and the break-even year.
- Open the year-by-year table to see exactly where the two paths diverge. Use Show all rows for longer horizons.
- Click Copy summary for a one-paragraph result, or Copy CSV to drop the full schedule into a spreadsheet.
About this tool
Rent vs Buy Calculator runs a true head-to-head comparison of buying a home and renting the same place for the same number of years. The buying side tracks the full PITI cost (mortgage principal and interest, property tax, home insurance) plus yearly maintenance, one-time closing costs, and the selling costs you pay when you eventually sell. Home value grows by the appreciation rate you pick, the mortgage amortizes on the standard fixed-rate formula, and a remaining loan balance is netted out of the sale proceeds. An optional Apply mortgage tax savings toggle credits back marginal-rate savings on mortgage interest and property tax for jurisdictions where you itemize. The renting side tracks rent (with a yearly growth rate), renters insurance, and an alternative investment portfolio. The renter starts the portfolio with the cash the buyer would have spent on the down payment and closing costs, and each year credits or debits the gap between the buyer's and renter's housing cash flow at the investment return rate you choose. The verdict card shows which side wins after your chosen horizon and by how much, plus the break-even year (the first year buying gets cheaper than renting on a cumulative net cost basis). Stat cards report the monthly mortgage payment, the up-front cash needed to buy, the home value at horizon, and whether the loan is paid off in time. A scrollable year-by-year table reveals the underlying numbers (yearly buy spending, interest paid, loan balance, home value, rent paid, renter portfolio, and the net difference) so you can sanity-check the comparison yourself. Five presets cover starter homes, mid-market 30 year loans, low-down-payment scenarios, expensive metros, and short-stay horizons. Copy summary and Copy CSV buttons give you a portable record of any scenario. Everything runs locally in your browser. No income, rent, or address data is uploaded or stored.
Free to use. Works in your browser. No signup, no login.
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