Rent vs. Buy Calculator

About the Rent vs. Buy Calculator

Deciding whether to rent or buy a home is one of the biggest financial decisions you'll make. This calculator is designed to help you compare the long-term financial implications of both options.

How It Works

The calculator analyzes your net worth over time in both scenarios.

• Buying Scenario: It accounts for your down payment, mortgage payments (principal and interest), property taxes, maintenance costs, and the potential appreciation of the home's value. Your net worth is primarily your home equity.
• Renting Scenario: It calculates your annual rent (including expected increases) and assumes you invest the money you would have spent on a down payment and other homeownership costs. Your net worth is the value of this investment portfolio.

Key Inputs

• Home & Rent Costs: The purchase price of the home versus your monthly rent.
• Growth Rates: Estimated home appreciation, rent increases, and the return on your investments.
• Timeframe: The number of years you want to compare.

The "breakeven point" shows you the year in which the financial benefits of owning the home typically surpass the benefits of renting and investing. Use this tool to get a clearer picture of which path might be more financially advantageous for you over the long run.