Compare the wealth you'd have after renting or buying a home over the years you plan to stay.
Enter your values and select Calculate to see the result.
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Comparing rent with a mortgage payment isn't enough: owners also pay property tax, maintenance, insurance and buying and selling costs, but they build equity. Renters keep their down payment invested. This calculator simulates both, month by month, for the years you expect to stay:
The result is each side's wealth at the end.
home value × (1 − selling costs %) − loan left + money invested from lower costs
(down payment + buying costs) invested + money invested from lower costs
With 20% down at 6.5% (a $2,022.62 mortgage payment), 1.1% tax, 1% upkeep, $1,500 insurance, 3% home and rent growth and a 6% investment return, renting comes out about $5,900 ahead after 10 years. Owning costs $34,286 in the first year against $26,400 of rent.
With the same home and $4,000 rent, buying pulls ahead after 2 years. For a stay of only 3 years at $2,200 rent, renting wins by more: buying and selling costs have little time to pay off.
Buying and selling costs are paid once, so they weigh less the longer you stay, while equity and home value growth keep adding up.
Taxes on gains, mortgage interest deductions, HOA fees, moving costs and the non-money value of owning or the flexibility of renting.
Home value growth, the investment return and how long you stay. Try pessimistic and optimistic values to see how sure the answer is.
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