Should I include inflation separately?

Yes when the calculator allows it. Separating inflation from returns usually makes the planning logic easier to understand.

What if my real life differs from the model?

That is normal. Use the output as a planning range and update the scenario as new information arrives.

Which metric should I pay attention to first?

Start with the headline summary and the first two or three result cards. Those usually hold the most decision-useful information.

Can I share these results with someone else?

Yes. Major calculators support shareable URL state so you can copy the scenario link and send it directly.

Home & Mortgage

Rent vs Buy Calculator

Compare the long-term financial tradeoff between renting and buying based on your timeline, mortgage terms, and home appreciation assumptions.

Best used for

Compares net owner sale proceeds with an invested renter alternative over the same time horizon.

All calculators Read guide

Housing & Debt

Rent vs Buy Calculator

Compare the long-term financial tradeoff between renting and buying based on your timeline, mortgage terms, and home appreciation assumptions.

Snapshot

Renting and investing the difference may be ahead by about $27,667.

The buy path estimates net owner proceeds near $239,697 versus an invested renter portfolio near $267,364 after including taxes, insurance, upkeep, and selling costs.

Owner net proceeds

$239,697

Renter portfolio

$267,364

Your Numbers

Home pricePurchase price or comparable home value.

Down paymentCash used upfront for the purchase.

Interest rate

Your current annual mortgage interest rate.

6.25

Loan termOriginal remaining term used for the standard payoff schedule.

Monthly rentCurrent or target monthly rent for a comparable home.

Monthly property taxEstimated monthly property-tax cost.

Monthly insuranceEstimated homeowners-insurance cost.

Monthly maintenanceAverage monthly repairs and upkeep reserve.

Monthly HOALeave at 0 if the home has no HOA dues.

Buy closing costsCash costs paid to close on the purchase.

Selling cost

Agent fees and other selling costs as a percent of future sale price.

Home appreciation

Assumed annual home price growth.

Annual rent growth

Expected annual increase in comparable rent.

Investment return

Expected annual after-fee portfolio return.

Years in home

How long you expect to stay in the property.

Results

Renting and investing the difference may be ahead by about $27,667.

The buy path estimates net owner proceeds near $239,697 versus an invested renter portfolio near $267,364 after including taxes, insurance, upkeep, and selling costs.

Owner net proceeds

$239,697

Estimated equity after selling costs.

Renter portfolio

$267,364

All-in owner cost

$3,674

Mortgage, tax, insurance, upkeep, and HOA.

Monthly rent

$2,800

Difference

-$27,667

Projection outlook

See how the modeled path evolves over time under the current assumptions.

Projected balance

Total contributions

Target line

Optimistic currently leads conservative by about $55,000.

Important findings

Monthly cash flow matters as much as equity

Owning costs about $874 more per month than renting at the start. That extra cash drag is why short ownership periods often look worse than people expect.

Transaction costs create a real hurdle

This model includes about $12,000 to buy and roughly $40,586 to sell. Those friction costs are a big reason rent can win when the time horizon is short.

Most of the owner outcome comes from principal plus appreciation

By year 7, the model estimates about $43,852 of mortgage principal paid down and about $126,431 of home-value growth before selling costs.

The biggest swing factors are time horizon and appreciation

If you stay longer or home values grow faster than 3%, buying usually improves. If your timeline shortens or rent growth stays moderate, renting and investing can close the gap quickly.

How it works

The calculation, without the clutter

The buy side estimates mortgage amortization, home appreciation, carrying costs, and net sale proceeds after selling costs.

The rent side invests the avoided upfront purchase cash and any monthly savings when renting costs less than ownership.

Rent can rise each year, so the renter path is not treated as a flat monthly cost forever.

Where this tool is most useful

If you may move again in five to seven years, closing costs and selling costs can overwhelm the equity you build even when the mortgage payment feels manageable.

Key assumptions

What to sanity-check

Buying includes principal and interest, property tax, insurance, maintenance, HOA dues, buy closing costs, and selling costs.
Buying still assumes a fixed-rate mortgage and a steady annual home appreciation rate rather than real market volatility.
Renting assumes the avoided upfront cash and any monthly savings versus ownership can be invested at the chosen return.

Companion guide

Net worth tracking

A lightweight system for tracking financial progress without turning it into a daily obsession.

Read the guide

FAQ

Common questions

Are these outputs guarantees?

No. They are planning estimates based on your assumptions and should be updated as markets, taxes, and spending change.

Do these calculators replace professional advice?

No. They are a strong planning starting point, but tax, legal, and investment decisions should be reviewed with a qualified professional when appropriate.

How often should I revisit my inputs?

A good rule is to revisit assumptions after major income, spending, family, tax, or market changes and at least a few times per year.

Why do the optimistic and conservative scenarios matter?

They help you see how sensitive the result is to assumptions instead of anchoring on one exact output.