Calculator

Buying vs. Renting Calculator

Compare ending net worth under buying versus renting-and-investing-the-difference, over the same time horizon.

← Read the Buying vs. Renting concept page

Home price

Down payment

Mortgage rate

Years (mortgage term & comparison horizon)

yrs

Monthly rent (equivalent home)

Annual ownership costs (tax, insurance, maintenance)

%/yr

Expected home price appreciation

%/yr

Expected investment return (if renting instead)

%/yr

Renting wins

$704,333.97

difference in ending net worth after 30 years

Owner's ending net worth

$902,941.64

Renter's ending net worth

$1,607,275.61

How the math works

Owner's true monthly cost: $2,585.23 (mortgage + ownership costs)
Monthly gap vs. rent:      $785.23 (what a renter could invest instead)

Home value after 30 years: $970,904.99
Owner's ending net worth (after ~7% assumed selling costs): $902,941.64

Renter's ending net worth (down payment + monthly gap, both invested): $1,607,275.61

This assumes the mortgage is paid off entirely by the end of the 30-year horizon, and that a renter actually invests the monthly gap rather than spending it. The result is sensitive to the gap between the assumed investment return and home appreciation rate — try adjusting either one to see how much it can flip the answer.