Rent vs. Buy Calculator
Compare renting vs. buying a home over time. Model home appreciation, mortgage paydown, rent increases, and opportunity cost to see which builds more wealth — with a side-by-side equity chart.
How to use this tool
- Enter home price, down payment, mortgage interest rate, current monthly rent, annual home appreciation, annual rent increase and years to compare in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your buy scenario equity and the full breakdown beneath it.
Whether buying or renting is better depends on local prices, mortgage rates, home appreciation, and what renters do with the money they don't tie up in a down payment. This model compares wealth accumulation, not just monthly costs.
Frequently asked questions
- What costs are not included?
- This model excludes property taxes, maintenance (~1% of home value/year), HOA fees, insurance, and transaction costs. Add these to the buy side for a more complete comparison.
- When does buying always win?
- In high-appreciation markets with long time horizons, buying typically dominates because leverage amplifies gains. Renting wins in stagnant markets when renters invest the difference aggressively.