Buy vs Rent Calculator
Adjust every assumption. See exactly where your money goes over time.
Renting wins
$6,457
renting saves you over 10 years
Breakeven Rent
$2,253
rent above this? buying is cheaper
Breakeven
Never
in this scenario
Price-to-Rent
15.2x
moderate
Detailed Breakdown - 10 Years
| Buy | Rent | |
|---|---|---|
| Costs Paid | ||
| Upfront costs | $92,000 | $2,200 |
| Mortgage interest | $193,998 | -- |
| Property taxes | $52,745 | -- |
| Insurance | $23,975 | $2,285 |
| Maintenance | $47,950 | -- |
| Utilities | $13,444 | -- |
| Total rent paid | -- | $309,709 |
| Selling costs | $34,040 | -- |
| Tax benefit received | -$0 | -- |
| Wealth Built | ||
| Home value at year 10 | $567,338 | -- |
| Principal paid (equity built) | $48,716 | -- |
| Net home proceeds (after sale) | $262,014 | -- |
| Investment portfolio | $0 | $268,471 |
| Net wealth | $262,014 | $268,471 |
Buyer wealth = home equity (after selling costs) + investment portfolio. Renter wealth = investment portfolio built from down payment savings and monthly cost differences.
Beyond the Numbers
Advantages
Building equity
Stability & control
Hedge against inflation
Tax benefits
Forced savings
Leverage
Community roots
Disadvantages
Illiquid asset
High transaction costs
Maintenance burden
Concentration risk
Reduced mobility
Hidden costs
This calculator provides estimates for educational purposes only. Actual costs vary based on location, lender, and individual circumstances.
How Our Buy vs Rent Calculator Works
Most buy-vs-rent calculators oversimplify the math. They compare your mortgage payment to rent and call it a day. Ours runs a month-by-month simulation that tracks every dollar for both the buyer and the renter over your chosen timeline - typically 10 to 30 years.
What Makes This Calculator Different
- After-tax investment returns. The renter's surplus gets invested in the stock market, taxed at capital gains rates. Most calculators skip this entirely.
- Savings discipline. Not every renter invests 100% of their savings. Our default assumes 80% - adjustable to match your actual habits.
- Real tax math. We model the standard deduction vs. itemized, SALT cap ($10K), mortgage interest deduction, and PMI deductibility. No inflated tax benefits.
- All buyer costs. Mortgage interest, property tax, insurance, PMI, HOA, maintenance (1.5% of home value), and 6% selling costs when you move.
- Wealth comparison. At the end, we compare the buyer's home equity (minus selling costs) against the renter's investment portfolio. The bigger number wins.
The Real Question: Rent and Invest vs Buy
The calculator above answers a specific question: if you rent instead of buying, and invest the difference (down payment, closing costs, and monthly savings) in a diversified portfolio, which path leaves you wealthier? With the S&P 500 averaging roughly 10% annual returns over the past century, and US home prices averaging just 3.4% (per Robert Shiller's data), renters who invest often come out ahead - especially in expensive coastal markets.
That said, buying has one major advantage: it's a forced savings plan. The median homeowner's net worth is $430,000 vs. just $10,400 for renters (Federal Reserve Survey of Consumer Finances). Much of that gap comes from income differences, but the mortgage-as-discipline effect is real. Use the savings discipline slider above to see how this changes your result.
20+ Adjustable Assumptions
Every number in this calculator is adjustable. Change the mortgage rate, home appreciation, investment return, property tax rate, insurance, maintenance, down payment, closing costs, selling costs, and more. We start with sensible 2026 defaults (6.5% mortgage rate, 3.5% appreciation, 8% investment return), but your situation may differ. Select a city from the dropdown to auto-fill local market data from Zillow, Redfin, and Census sources.
When Buying Wins
Buying tends to win when: you plan to stay 10+ years, your local price-to-rent ratio is below 15x, mortgage rates are low (under 5%), you wouldn't actually invest the savings, or home appreciation in your area is strong. Cities like Detroit, Philadelphia, and Chicago often favor buying thanks to lower home prices relative to rent.
When Renting Wins
Renting tends to win when: you're disciplined about investing the difference, the price-to-rent ratio exceeds 20x, mortgage rates are high, you might move within 5-7 years, or you're in an expensive market like San Francisco, San Jose, or New York. At current 2026 mortgage rates (6.5%), renting wins in the majority of US metros for a disciplined investor.