About the Rent vs. Buy Calculator
Comparing rent to a mortgage payment alone is misleading — it ignores that a down payment could otherwise be invested, and that owning comes with property tax, insurance, maintenance, and eventual selling costs that renting doesn't. This calculator runs both paths month by month: the buying path tracks your mortgage paydown and home value growth; the renting path invests what you didn't spend on a down payment, plus whatever cash you save in any month renting turns out cheaper than owning would have been. At the end of your time horizon, it compares your net home equity (if you sold) against your investment balance, and shows year by year which option was ahead — including the break-even point, if the two cross within your timeframe. Everything is calculated locally in your browser.
How the Comparison Works
The renter's investment accountStarts with the down payment and closing costs you would have spent buying. Any month where owning would have cost more than renting, that difference gets added and invested too — this is what makes the comparison fair rather than just "rent vs mortgage payment."
The buyer's positionHome value (growing at your appreciation assumption) minus the remaining mortgage balance minus selling costs — this is what you'd actually walk away with if you sold at that point.
Why the assumptions matter so muchSmall changes in home appreciation or investment return compound significantly over 10+ years and can flip the result entirely — there's no single "right" number for either, since both depend on markets nobody can predict with certainty.
Non-financial factorsStability, control over your space, and not dealing with a landlord are real considerations this calculator doesn't and can't capture — the "right" financial answer isn't always the deciding factor for everyone.
What this doesn't includeMortgage interest tax deductions, rent control effects, PMI (private mortgage insurance) on low down payments, and one-time moving costs on either side.
Send Feedback
For any questions, bug reports, or feature requests, please use the form below to send us a message.