Rent vs Buy Calculator
Owning and renting both cost money every month. The question is which leaves you with more after the years you plan to stay. Enter both sides and see the gap year by year.
Renting comes out ahead after 10 years by
$64,230
Buying does not break even within 10 years at these numbers.
- Buyer's wealth47%
- Renter's wealth53%
- Owning cost, first month
- $6,048
- Rent, first month
- $3,800
- Cash to buy (down payment and closing)
- $191,250
- Home value after 10 years
- $1,258,208
- Loan balance remaining
- $580,047
- Total rent paid over 10 years
- $522,753
- Total owning outlay (incl. closing)
- $772,938
- Buyer's net wealth
- $602,668
- Renter's net wealth
- $666,899
- Break-even year
- Not within the period
Over 10 years, renting and investing the down payment leaves you about $64,230 ahead. Staying longer, or a lower price or rate, would tilt it toward buying.
| Year | Home value | Loan balance | Buyer's wealth | Renter's wealth | Difference |
|---|---|---|---|---|---|
| 1 | $884,000 | $672,753 | $158,207 | $230,776 | -$72,569 |
| 2 | $919,360 | $665,001 | $199,197 | $271,875 | -$72,678 |
| 3 | $956,134 | $656,710 | $242,057 | $314,620 | -$72,564 |
| 4 | $994,380 | $647,841 | $286,876 | $359,088 | -$72,212 |
| 5 | $1,034,155 | $638,355 | $333,751 | $405,359 | -$71,608 |
| 6 | $1,075,521 | $628,208 | $382,782 | $453,518 | -$70,736 |
| 7 | $1,118,542 | $617,355 | $434,075 | $503,654 | -$69,580 |
| 8 | $1,163,284 | $605,746 | $487,741 | $555,863 | -$68,122 |
| 9 | $1,209,815 | $593,329 | $543,898 | $610,243 | -$66,345 |
| 10 | $1,258,208 | $580,047 | $602,668 | $666,899 | -$64,230 |
Estimates for illustration only, not a loan offer or a commitment to lend. Rates, taxes, insurance and program rules vary; our team will confirm exact figures for your situation.
How this calculator works.
The buyer pays the down payment and closing costs up front, then the mortgage, property tax, insurance, maintenance and any HOA each month. The renter keeps the down payment and closing costs invested at the return you enter.
Each month, whichever side spends less invests the difference, so both start and spend the same total. Rent grows each year; the home appreciates; property tax rises by 2% a year, the most Proposition 13 allows on the assessed value.
At the end of each year the buyer's wealth is the home value after selling costs, minus the loan balance, plus their invested savings. The renter's wealth is their portfolio. The break-even year is the first year the buyer comes out ahead. Tax deductions are not included.
Buyer wealth = value × (1 − selling costs) − loan balance + buyer's investments. Renter wealth = invested down payment, closing costs and monthly savings.
Common questions.
Turn the estimateinto real numbers.
Answer a few questions and our team will price your scenario with current rates and the right program.
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