Rent vs buy calculator

Updated 2026-09-26

Using Rent vs buy calculator

Compare home equity after sale with the renter’s investment balance while matching both scenarios’ cash-flow budgets.

Renter initially invests the buyer’s down payment plus purchase closing costs, then invests monthly ownership outlay minus rent. A negative renter balance is a funding shortfall, not an available asset. The home compounds at your appreciation assumption; rent and renter investments use effective monthly rates. Sale proceeds repay mortgage debt and sale costs. Ownership costs stay constant and must include your taxes, insurance, repairs and fees. No tax deductions, moving costs, transaction timing, market forecast or recommendation is supplied.

Next: Mortgage calculator

Next: Rent calculator

A worked example

Example inputs: home purchase price = 120000, starting monthly rent = 500, years compared = 5, down payment (%) = 20, mortgage annual nominal rate (%) = 0, mortgage term (months) = 240, buy closing costs paid upfront = 2000, other monthly ownership costs = 200, annual home appreciation (%) = 0, annual rent increase (%) = 0, renter annual effective investment return (%) = 0, sale costs (% of future home value) = 0. Net-wealth advantage of buying = 16000.

Before you use the result

Renter initially invests the buyer’s down payment plus purchase closing costs, then invests monthly ownership outlay minus rent. A negative renter balance is a funding shortfall, not an available asset. The home compounds at your appreciation assumption; rent and renter investments use effective monthly rates. Sale proceeds repay mortgage debt and sale costs. Ownership costs stay constant and must include your taxes, insurance, repairs and fees. No tax deductions, moving costs, transaction timing, market forecast or recommendation is supplied.