HOUSING DECISION CALCULATOR
Rent vs. Buy Calculator
Is renting or buying likely to cost less over the number of years you plan to stay? Compare projected cash outlays against sale proceeds and the potential value of investing the money not spent on purchasing a home.
Projected 7-year comparison
$186,903
Cash spent minus estimated net sale proceeds
$70,018
Rent paid minus projected investment gains
Renting is cheaper in this illustrative scenario. The difference is $116,885 over 7 years. These are scenario results, not predictions.
Buying begins with $80,000 down plus closing costs. Monthly mortgage principal and interest: $1,919. Estimated home resale value: $459,474; equity after selling costs and mortgage payoff: $145,060.
Simplified US-style comparison. Assumes a 30-year fixed mortgage, constant mortgage rate, stated appreciation, stated investment return, rent increases annually and annual homeownership costs grow with the entered home appreciation rate. A renter invests the down payment and avoided buyer closing costs and the monthly difference in ownership versus rent costs (which can be negative). Does not model tax deductions, PMI, HOA fees, renovations, investment taxes, capital gains, property-specific expenses, changes to insurance/tax assessments or market volatility. Negative net costs are possible when projected gains exceed cash outflows. Not financial advice.
What does renting versus buying actually compare?
Monthly payments alone are misleading: ownership involves a down payment, mortgage interest, maintenance, property tax, insurance, transaction costs and potentially a gain or loss when the property is sold. Renters may invest money they did not commit to a down payment. The estimate shows how changing those assumptions alters the result.
How to use the result
Try conservative, moderate and unfavorable scenarios. Home prices and investment returns are uncertain, and transaction costs can make short ownership periods expensive. A lower modeled cost does not by itself tell you which home or neighborhood you should choose.