Rent vs Buy Calculator — Which Path Builds More

Typical home price and rent for this language are already filled in. Change them to yours. You will see this month’s housing cost for each path, and a sketch of wealth after the years you plan to stay.

Home price A typical number is already filled. Change it to yours.

USD

Cash down payment Often about 20%. Must be less than the price.

USD

Loan interest (yearly) A typical rate for this country is filled.

Loan length (years) 30 is common in some countries, 20 in others.

Years you plan to stay Short stays often favor renting because buying has fees.

Rent you would pay now (month) Use a real listing near the same home.

USD

Rent rise each year A typical guess is already filled.

Home price rise each year Past years are not a promise.

Yearly property tax (% of price) Leave as-is if unsure.

Yearly upkeep (% of price) Repairs, not a remodel list.

Buying fees (% of price) Agent, tax, moving — one bundle.

Selling fees (% of future price) Taken off when you leave.

If you rent: yearly return on the cash What the down payment might earn instead. A guess.

Own: housing cost this month$2,723

Rent this month$2,200

Wealth if you buy (after stay)$173,101

Wealth if you rent (after stay)$186,049

How much the winner is ahead$12,948

Which path is aheadRenting

Loan at the start$320,000

Loan left at the end$289,332

Home price at the end (sketch)$491,950

How this calculation works

Owning: loan payment (price − down payment) plus a simple slice of property tax and upkeep. After your stay we estimate remaining loan, a grown home price, minus a selling fee — that leftover is “wealth if you buy”.

Renting: we assume you invest the down payment and buying fees, and each month you invest the difference between owning-cost and rent (or draw if rent is higher). Rent can rise each year. This is a planning sketch, not a bank quote.

Worked example

A 400,000 home, 80,000 down, 6.5% loan, 2,000 rent, 7 years: owning costs more per month at the start. Whether wealth ends higher depends on how long you stay, price growth, and what the down payment earns if you rent instead.

What the two wealth numbers count

Buying wealth is leftover after selling costs: grown home price minus remaining loan minus selling fee. It is not cash in a checking account until you sell.

Renting wealth is a made-up portfolio that starts with the cash you did not put into a house. If monthly rent is higher than owning costs, that portfolio shrinks.

Fees, time, and rates flip the story

Buying has a lump of fees on day one. If you move in three years, those fees have little time to be “earned back”.

Higher loan rates raise the monthly owning bar. Faster rent growth raises the renting bar later. Change More settings and watch the chart.

Frequently asked questions

Is this a mortgage offer?

No. Loan math is a standard payment formula. Fees, insurance, and HOA are simplified. Get a local quote before you sign.

What does “wealth if you rent” mean?

It is the down payment and buying fees grown in a simple investment, plus (or minus) the monthly gap versus owning costs. It is not a guaranteed return.

Why might renting win on this page?

Short stays, high purchase fees, high rates, or strong investment returns can make renting’s pile larger. Staying longer or faster home-price growth can flip it.

Do you save the numbers I type?

No. Everything stays in your browser.

Did you include repairs?

A yearly upkeep % of the home price is in More settings. Big renovations are not modeled one by one.

Is this financial advice?

No. It is a calculator with guesses you can change. Check important numbers yourself.

This tool is provided for general information only. Verify important figures independently. · Last reviewed: August 25, 2026