Rent vs buy
Rent vs Buy Calculator
Compare the long-run cost of renting and investing the difference against buying a home, and find the year buying breaks even.
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What the renter earns investing the down payment and any monthly savings.
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Buying: net worth after 10 yrs
$234,029
Renting: net worth after 10 yrs
$244,035
Renting comes out ahead by
$10,006
Buying doesn't overtake renting within 10 years with these numbers. Buyer's monthly principal and interest: $2,023.
BuyRent & invest
Assumes 3% closing costs to buy, 6% selling costs, a 30-year fixed loan, and that whoever spends less each month invests the difference. Ignores tax effects (mortgage interest deduction, capital gains) and PMI. Small changes to price growth and returns change the answer a lot — try a pessimistic case too.
