Rent vs Buy
Compare the long-term financial tradeoff between renting and buying based on your timeline, mortgage terms, and home appreciation assumptions.
This model is built to help you move from one financial question into a more decision-ready plan with assumptions, example context, and related next steps.
Projection chart
This chart updates instantly as you change the assumptions above.
X-axis shows years from today. Y-axis shows projected dollar value. The lines update as your assumptions change.
Buy vs rent wealth path
Compare home value growth and invested renter value over your expected time horizon.
X-axis shows years from today. Y-axis shows projected dollar value. The lines update as your assumptions change.
Principal vs interest breakdown
A quick view of how much of the modeled payoff goes to principal versus interest.
Scenario comparison
Compare the relative size of the base, optimistic, and conservative outputs.
Accessibility summary: The buy path estimates owner equity near $280,283 versus an invested renter portfolio near $179,299. Base: $100,983 (Buy minus rent outcome) | Optimistic: $128,483 (Stronger appreciation case) | Conservative: $73,483 (Weaker appreciation case)
Results
Buying may come out ahead by about $100,983 over 7 years.
The buy path estimates owner equity near $280,283 versus an invested renter portfolio near $179,299.
Owner equity
$280,283
Renter portfolio
$179,299
Mortgage payment
$2,709
Monthly rent
$2,800
Difference
$100,983
Share summary
Shareable takeaway
Rent vs buy estimate: owner equity $280,283 versus renter portfolio $179,299 over 7 years.
Saved scenarios
Save multiple scenarios to compare optimistic, conservative, and custom planning paths later.
Scenario comparison
Base
Buy minus rent outcome
$100,983
Optimistic
Stronger appreciation case
$128,483
Conservative
Weaker appreciation case
$73,483
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Model overview
Understand the model at a glance
What this model does
- Compares approximate owner equity with an invested renter alternative over the same time horizon.
- Helps you think in terms of net position rather than just monthly payment.
- Frames the decision as a time-horizon tradeoff rather than a purely emotional choice.
Key assumptions
- This model simplifies taxes, maintenance, insurance, and transaction costs to keep the comparison directional.
- Buying assumes a fixed-rate mortgage and home appreciation at the modeled rate.
- Renting assumes the down payment difference can be invested at the chosen return.
Example scenario
If you may move again in five to seven years, the outcome can look very different from a twenty-year ownership plan even with the same home price and mortgage rate.
How the math works
Open to review the formulas and planning logic behind this model.
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How the math works
Open to review the formulas and planning logic behind this model.
- The buy side estimates mortgage amortization and home appreciation over the chosen years in home.
- The rent side assumes the down payment stays invested and compounds at the chosen investment return.
Next steps
Insights and recommendations
Questions
FAQ
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.
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.
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