Rent vs. Buy Calculator
Compare the total cost of renting versus buying a home over a chosen number of years, accounting for home equity built up.
Cheaper Option
Buying
Saves you $133,861 over the comparison period.
- Net cost of buying
- $113,759
- Total cost of renting
- $247,620
- Home equity at end
- $292,956
Assumptions
- Does not account for the opportunity cost of investing the down payment elsewhere, or closing/selling costs
- Assumes constant rent increase and home appreciation rates
How it's calculated
Net cost of buying = cash spent (down payment + mortgage payments + tax + maintenance) − home equity at the end. Compared against total rent paid over the same period.
Worked example
A $400,000 home with 20% down, compared against $1,800/month rent over 10 years, shows which option is cheaper live above.
Frequently asked questions
Does this include closing costs?
No — closing costs, selling costs, and the opportunity cost of investing the down payment elsewhere are not modeled, since they vary widely by situation.