Should you rent or buy? This rent vs. buy calculator compares your net worth in both scenarios, year by year. On the buying side it counts your mortgage, property tax, insurance, maintenance, HOA dues, PMI, closing costs and selling costs. On the renting side it assumes you invest the down payment and any monthly savings. The result shows which choice leaves you wealthier and when buying starts to pay off.
Rent vs. Buy Calculator
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What decides rent vs. buy
- How long you’ll stay. Buying and selling a home costs several percent of the price each way, so short stays usually favor renting.
- Mortgage rates. Higher rates raise the cost of owning and push the break-even point further out.
- Rent vs. price in your area. When home prices are high relative to rents, renting and investing can win for many years.
- Home value growth and investment returns. Small changes in these assumptions can flip the answer, so try a few scenarios.
Money isn’t the only factor. Owning brings stability and control over your space; renting brings flexibility and fewer surprise repair bills.
Related: Home Affordability Calculator, Mortgage Calculator, First-Time Homebuyer Programs, All Financial Calculators.