Rent vs. Buy Calculator
Explore a choice with several moving parts. Both paths start with equal resources; no return or home-price outcome is guaranteed.
Try your assumptions
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All numbers are hypothetical. Enter amounts in dollars and rates as percentages.
Scenario results
Exact model assumptions
Buyer uses the down payment plus purchase costs up front; renter invests that same sum. Each month the lower-cost path invests the cash-flow difference. Investments compound monthly from an effective annual return, including negative returns. Rent, home value, maintenance, tax, insurance, and HOA change smoothly with the entered annual assumptions. A fixed-rate mortgage amortizes monthly and stops after payoff; mortgage insurance stops when its balance reaches zero. Sale proceeds equal modeled home value less selling costs and remaining loan. Excludes investment and property taxes on sale, tax deductions, rent deposits, utilities, repairs above the reserve, renovations, and insurance claims. Negative sale proceeds mean a financing shortfall, not cash received.
Keep learning
Renting vs. buying a home explains the terms behind these numbers. For a real loan decision, compare written Loan Estimates and consider a HUD-approved housing counselor.