Free Calculator
Buy vs Rent Calculator
Should you buy or rent? Compare the true costs of homeownership versus renting over time, including equity building, investment returns, and tax benefits.
Buying Scenario
Home purchase details
Renting Scenario
Rental details
Comparison Settings
Time horizon and assumptions
Renting is Better
After 10 years, renting puts you ahead by $727
Buying Net Worth
$299,568
Home Equity
Renting Net Worth
$300,295
Investment Value
Detailed Comparison
After 10 years
Total Cost of Buying$509,755
Total Cost of Renting$345,916
Final Home Value$604,762
Final Home Equity$299,568
Renter Investment Value$300,295
Year-by-Year Breakdown
| Year | Home Equity | Investment | Difference |
|---|---|---|---|
| 1 | $107,524 | $120,075 | -$12,552 |
| 2 | $125,722 | $137,264 | -$11,541 |
| 3 | $144,625 | $155,091 | -$10,466 |
| 4 | $164,265 | $173,585 | -$9,320 |
| 5 | $184,674 | $192,774 | -$8,101 |
| 6 | $205,888 | $212,691 | -$6,803 |
| 7 | $227,945 | $233,366 | -$5,421 |
| 8 | $250,882 | $254,834 | -$3,952 |
| 9 | $274,743 | $277,131 | -$2,389 |
| 10 | $299,568 | $300,295 | -$727 |
Understanding the Comparison
Key factors that influence the buy vs rent decision
Tips for Making Your Decision
Consider Buying If:
- •You plan to stay 5+ years in the same area
- •Local rent is high relative to home prices
- •You want to build long-term wealth
- •Interest rates are favorable
Consider Renting If:
- •You might move within 3-5 years
- •Home prices are very high in your area
- •You prefer flexibility and less responsibility
- •You can invest the difference wisely
Ready to Buy?
Estimate your closing costs and monthly payments with our other calculators.