Rent vs. Buy Calculator

True financial cost comparison — net of equity, investment returns, and transaction costs

← Back to portfolio
Property
sq ft
$ / sq ft
$ / sq ft / mo
Purchase Costs
%
% / year
% of home value
% of home value
% of purchase price
% of sale price
Growth & Returns
% / year
% / year
% / year
Analysis Window
years
Cumulative Net Cost Over Time
Lower is better. Negative values mean you came out ahead financially.
Year-by-Year Breakdown
Year Mo. Rent Mo. Buy Cost Home Value Equity Net Cost — Buy Net Cost — Rent Advantage
Methodology. Both the buyer and renter begin with the same capital (down payment + closing costs). The renter invests that capital at the specified return rate, plus any monthly savings when renting costs less than buying (if buying is more expensive per month, the renter invests the difference; if renting is more expensive, the renter draws from the portfolio). Net cost to buy = all cash paid out (down payment, closing costs, full mortgage payments, property taxes, maintenance) minus net sale proceeds (home value × (1 − selling rate) − remaining mortgage balance). Property taxes and maintenance are recalculated each year against the current appreciated home value. Net cost to rent = cumulative rent paid, minus investment portfolio gains above the initial capital deployed. When net cost to buy < net cost to rent, owning has become the more efficient use of capital over the chosen horizon.