Rent Vs Buy
Calculator
Results
- Cumulative rent cost
- $262,793.30
- Modeled ownership cost
- $196,242.56
- Lower modeled cost
- buy
Modeled rent and buy costs by year
- Cumulative rent cost
- Modeled ownership cost
Comparison
| Scenario | Modeled cost |
|---|---|
| Rent | $262,793.30 |
| Buy | $196,242.56 |
Annual rent-versus-buy scenario
| 1 | 24,000.00 | 39,450.16 | 313,401.90 | 408,000.00 | 20,400.00 | 74,198.10 | 3,200.00 |
| 2 | 48,480.00 | 58,538.74 | 306,466.22 | 416,160.00 | 20,808.00 | 88,885.78 | 6,528.00 |
| 3 | 73,449.60 | 77,250.56 | 299,175.71 | 424,483.20 | 21,224.16 | 104,083.33 | 9,989.12 |
| 4 | 98,918.59 | 95,569.69 | 291,512.20 | 432,972.86 | 21,648.64 | 119,812.02 | 13,588.68 |
| 5 | 124,896.96 | 113,479.42 | 283,456.60 | 441,632.32 | 22,081.62 | 136,094.10 | 17,332.23 |
| 6 | 151,394.90 | 130,962.22 | 274,988.87 | 450,464.97 | 22,523.25 | 152,952.85 | 21,225.52 |
| 7 | 178,422.80 | 147,999.71 | 266,087.92 | 459,474.27 | 22,973.71 | 170,412.64 | 25,274.54 |
| 8 | 205,991.26 | 164,572.59 | 256,731.57 | 468,663.75 | 23,433.19 | 188,498.99 | 29,485.52 |
| 9 | 234,111.08 | 180,660.62 | 246,896.54 | 478,037.03 | 23,901.85 | 207,238.64 | 33,864.94 |
| 10 | 262,793.30 | 196,242.56 | 236,558.32 | 487,597.77 | 24,379.89 | 226,659.56 | 38,419.54 |
Formula
Cᵦ = Cₚ − (Vₕ − Cₛ − Bₘ) + Cₒ- cash
- 384482.58
- equity
- 226659.56
- opportunity
- 38419.54
= 196242.56
Note
This is an assumption-driven cash-flow comparison, not a universal rent-or-buy recommendation.
More in Real estate
See all →Frequently asked questions
What costs does the rent-vs-buy comparison typically include on the buying side?+
Beyond the mortgage payment, it generally factors in property taxes, insurance, maintenance, HOA fees, and closing costs, along with the opportunity cost of the down payment. Renting is compared against the total cost of ownership, not just the mortgage payment alone.
Why does buying only 'win' after several years in most comparisons?+
Closing costs and other upfront transaction costs need time to be offset by the combination of equity buildup, appreciation, and any monthly cost advantage over renting. Selling too soon after buying often means transaction costs outweigh the benefits gained, which is why breakeven horizons of 3 to 7 years are common.
Does the calculator assume my home will appreciate?+
Most rent-vs-buy tools let you set an assumed appreciation rate, and the result is sensitive to this assumption — a modest 2% to 3% annual appreciation versus a flat or declining market can flip the conclusion entirely. Treat the appreciation rate as an estimate, not a guarantee.
How does the opportunity cost of my down payment factor in?+
The down payment money, if not spent on a home, could be invested elsewhere; the calculator typically credits renting with the investment growth that cash would have earned. A higher assumed investment return for that cash makes renting look comparatively more attractive.
Why might renting come out ahead even if my rent is close to what a mortgage would cost?+
Even with similar monthly payments, buying carries additional costs (maintenance, taxes, insurance, transaction costs at purchase and sale) that renting doesn't, plus the opportunity cost of the down payment. A rent that's merely 'close to' a mortgage payment often still favors renting once all ownership costs are included.