Buy vs Rent Calculator
Compare the financial impact of buying vs renting a home over time
Renting
Returned at end of rental period
Buying
Duration & Investment
15% capital gains tax applied to investment returns
Total Rent Paid
$233,863
Total Buy Costs
$479,443
Better Option
rent
Ahead by $120,791
Cost Breakeven
Never
Buy costs < Rent costs
Cost & Growth Comparison
Total Net Worth Comparison
Rent Scenario Breakdown
Minus: Total Costs Paid Over 10 Years
Buy Scenario Breakdown
Minus: Total Costs Paid Over 10 Years
Home value needed to reach $0 net worth$763,900
Buying Cost Breakdown (Where Your Money Goes)
$198,229 over 10 years
$57,432 over 10 years
$24,284 over 10 years
Total Costs (excluding principal):
$479,443
Opportunity Cost
The down payment money could be invested instead. This calculator shows how that initial investment would grow over time with compound returns, helping you see the true cost of tying up capital in a home purchase.
Hidden Costs of Ownership
Homeownership includes more than just the mortgage payment. Property taxes, insurance, maintenance, and PMI (if down payment < 20%) all add to the total cost. This calculator accounts for all these expenses.
Break-Even Analysis
The break-even point shows when total buying costs become less than total rent costs. However, the better financial decision depends on final net worth, which accounts for home appreciation and investment growth.
This calculator provides estimates for educational purposes only. Actual costs and returns may vary. This is not financial advice. Please consult with a financial advisor for personalized guidance.