Rent vs. Buy Calculator
Free rent vs. buy calculator that compares net worth fairly: it invests the renter's down-payment savings, accounts for appreciation, taxes, and selling costs, and finds your break-even year.
Frequently asked questions
Why does this calculator say renting can build more wealth?
Because it does the comparison fairly. Most "rent vs buy" advice ignores that a renter can invest the money a buyer ties up in a down payment, closing costs, and higher monthly costs. This tool invests that difference at your chosen return rate and compares each path's net worth — so renting-and-investing gets proper credit, which it usually does not in simpler tools.
What is the "break-even" year?
It is the point where the buyer's net worth first catches up to and passes the renter's. Before it, renting-and-investing is ahead; after it, buying is ahead. Because buying has large one-time costs (closing to buy, agent fees to sell), you generally need to stay past the break-even year for buying to pay off.
What matters most in the result?
Three inputs dominate: how long you stay (longer favors buying), your assumed investment return versus home appreciation (a higher investment return favors renting), and the rent-to-price relationship. Try nudging the "years you will stay" slider first — the winner often flips around the 4-to-7-year mark.
Is this financial advice?
No. It is an educational model based on the numbers you enter and cannot predict real markets, tax situations, or life changes. Use it to understand the trade-offs, then talk to a licensed professional about your specific situation.
Prefer the concepts first? Read rent vs. buy: how to actually decide or see how we calculate every result.