Rent or buy?
Compare what you would have after a set number of years if you rent and invest, or buy a home. Results depend heavily on growth and rent assumptions, so change them and see how the answer moves.
Your comparison
| Buying: home equity after selling costs | |
|---|---|
| Renting: invested savings | |
| Monthly mortgage payment | |
| Monthly cost of owning (payment, tax, maintenance) |
Year by year
| Year | Buy | Rent |
|---|
Taxes on investment gains, mortgage insurance, moving costs and rent changes beyond the rate you enter are not included.
What the comparison assumes.
Same starting cash. Buying uses your down payment and closing costs. Renting invests the same amount instead.
Monthly difference. Each month, the renter invests what the owner would have paid for housing, minus the rent. Property tax and maintenance are kept flat in dollars.
Owning. Net worth is the home’s value, less selling costs, less the mortgage balance.
Not included. Mortgage insurance, moving costs, taxes on investment gains, and changing household needs. This is an estimate, not financial advice.