Buy vs. Rent Calculator
Equity from buying against the invested savings from renting, year by year over the horizon you choose, with property tax, HOA, maintenance, appreciation and the mortgage-interest deduction included.
Buying costs
$
Down payment%
3%50%
Mortgage rate%
2%12%
Loan term
Property tax rate%
0.3%3.5%
$
Home appreciation%
0%8%
Renting costs
$
Annual rent increase%
0%8%
Years to compare yr
1 yr30 yr
Investment return rate%
1%12%
Income tax bracket
Enter the buying and renting costs, then select Compare buy vs rent to see equity against invested savings over your horizon.
How this is calculated
We project 30 years of wealth for buying (home equity, net of costs) vs. renting (investing the money you’d have spent on owning) and compare the outcomes.
The steps
- Buying: build equity as the mortgage amortizes and the home appreciates, net of taxes, insurance, maintenance, and selling costs.
- Renting: invest the down payment and any monthly cost difference at your expected return.
- Compare the two wealth paths over the horizon to find the crossover point.
Assumptions
- Home appreciation, rent growth, and investment return you enter.
- Includes ownership costs like maintenance and transaction costs.
Good to know
- Outcomes are highly sensitive to appreciation and how long you stay.
Related resources
Educational disclaimer. Everything on WealthSerene.com is educational and is not investment advice. Projections and calculations are illustrative; actual results depend on market conditions, your situation and factors outside this tool’s scope. For a decision specific to your situation, consult a qualified financial professional. View full disclosures