Rent vs. Buy Calculator

K-09

Net worth if you buy against renting and investing the difference, year by year, with the breakeven year.

Your choice

Years in the home

The single input that most often flips the answer.

Home price

Down payment

Interest rate

Loan term

15 yr30 yr

Closing costs to buy

Costs to sell

Agent commissions, transfer tax, and concessions when you leave.

Property tax rate

Homeowners insurance / year

Maintenance / year

Share of the home's value; 1% is the common rule of thumb.

HOA dues / month

PMI / year

Only under 20% down, until the balance reaches 78% of the price.

Monthly rent

For a home like the one you'd buy.

Rent growth / year

Insurance and HOA dues rise at the same rate.

Home appreciation / year

Investment return / year

What the renter earns on the down payment and any monthly savings.

Buying leaves you $34,060N3 richer after 10 years. It pulls ahead of renting for good in year 7N5.

Plan K-0930-year fixed at 6.25%, 3.5% appreciation, 6% on invested savings. Estimates, not advice.

Cash to buyN1: $52,000; down payment and closing
Owning, year oneN2: $3,175/mo; against $2,300 rent
Buyer, year 10N3: $227,129; equity after selling costs
Renter, year 10N4: $193,069; invested at 6%

Your net worth on each path

Home equity after selling costs, against the renter's invested savings

Buy
Rent and invest the difference

Every dollar over 10 years

What each path pays out, and what you walk away with

Line item	Buy	Rent
Down payment and closing	$52,000	—
Rent	—	$323,786
Mortgage interest	$209,246	—
Principal, kept as equity	$56,744	—
PMI	$15,900	—
Property taxes	$42,233	—
Insurance	$24,636	—
Maintenance	$46,926	—
Costs to sell	$33,854	—
Paid out in total	$481,539	$323,786
You walk away with	$227,129	$193,069

Estimates for education only, not financial advice. Assumes steady appreciation, rent growth, and returns, which real markets never deliver. Ignores income tax on gains and the mortgage interest deduction, which most households no longer itemize.