Rent vs Buy Calculator
Compare the net financial outcome of buying vs. renting, factoring in US-specific equity, tax benefits, and opportunity costs.
Analysis Parameters
Global assumptions & property data
🏠 Property
💳 Mortgage
🔑 Rental
🕒 Timeframe
Buying is the Winner
Net value difference of $21,175 after 10 years.Your home equity and tax benefits outweigh the rent savings.
Buying Net Worth
Total Tax Shield
Saved $74,707 in Taxes
Includes Down Payment + 3% Closing Costs
Renting Net Worth
Returns from investing your Down Payment + Closing Costs ($115,000)
Returns from investing the difference when buying was more expensive.
This money is gone ("sunk"), but investing the difference built your wealth.
US Market Model Included
This tool uses a robust Net Worth Comparison model, adjusted for US specifics: Tax Deductions (Interest & Property Tax relief), PMI (if <20% down), and Inflation on holding costs.
Guide & Insights
The Great Housing Debate
Deciding between renting and buying is more than just comparing a monthly mortgage to rent. Our Home Ownership Cost Analysis tool factors in property taxes, maintenance, insurance, and the opportunity cost to help you make the smartest long-term decision.
5 Year Rule
Generally, if you plan to stay in one place for less than 5-7 years, the transaction costs of buying (closing costs, agent fees) make renting cheaper.
Equity vs Flexibility
Buying builds equity but limits mobility. Renting offers freedom but no asset accumulation. This calculator puts a dollar value on that trade-off.
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