Rent vs Buy Calculator
Enter your situation to see the long-term financial outcome. No recommendations—just clear results based on your assumptions.
Add your home price and rent to see a personalized comparison
Your situation
Most people choose 10–20 years.
If you buy this home
These affect your mortgage, ownership costs, and how your home value changes over time.
If you rent instead
If you invest the difference
Advanced costs & tax details (optional)
These improve accuracy but don't change the core decision for most people.
Your marginal tax rate
Tax code limit on deductible interest
Note: Default assumptions shown below can be adjusted for any country.
Rent vs Buy Calculator
This tool compares the long-term financial outcomes of renting versus buying a home based on cash outflows, asset growth, and opportunity cost.
Additional Information
How people usually evaluate rent vs buy decisions
Understanding the Rent vs Buy Decision
This rent vs buy calculator helps you compare the long-term financial impact of renting versus buying a home. The decision to rent or buy is one of the most significant financial choices you'll make, involving complex trade-offs between immediate affordability, long-term wealth building, and opportunity costs that compound over decades.
A proper rent vs buy analysis goes beyond comparing monthly rent to mortgage payments. It must account for home equity accumulation, investment opportunity costs, tax benefits, and maintenance expenses. Most people underestimate how these factors interact over time, leading to decisions based on incomplete information.
Why Opportunity Cost Matters More Than You Think
When you buy a home, your down payment stops growing as liquid investments. This opportunity cost—what those funds could have earned in the stock market or other investments—often determines the true winner between renting and buying. A $100,000 down payment invested at 7% annual returns becomes $197,000 in 10 years, while the same amount in home equity grows only through appreciation and mortgage paydown.
Why "Break-Even Year" Analysis Is Misleading
Many calculators focus on finding the "break-even year" when buying becomes cheaper than renting. This approach is fundamentally flawed because it ignores net worth accumulation. Our calculator instead shows net financial positions—total costs minus total assets built—giving you a complete picture of each option's wealth-building potential over your chosen time horizon.
How Your Assumptions Drive Outcomes
Small changes in assumptions create dramatically different outcomes. A 1% difference in home appreciation rates or investment returns can swing the advantage from buying to renting over a 20-year period. This calculator shows you exactly how sensitive your specific situation is to these key variables, helping you understand which assumptions matter most for your decision.
Who Should Use This Calculator
This tool is designed for anyone comparing the long-term financial consequences of renting versus buying. Whether you're a first-time homebuyer, considering downsizing, or evaluating investment properties, the calculator provides transparent, deterministic analysis without recommendations. It works globally but includes tax benefit calculations commonly used in various countries.
Important: This tool shows financial consequences based on your inputs. It does not provide investment advice or recommendations. Consider consulting with qualified financial professionals for personalized guidance.