Scenario tools
Rent vs. Buy
Renting or buying
Compare the cost of renting and buying over the same number of years, including home equity, moving costs and investing the difference.
Enter the renting and buying details. Property tax and homeowners insurance are required.
Suppose renting initially costs $2,020 a month including insurance and buying requires $2,700 in payments and running costs. The $680 monthly difference is cash the renter could save, not proof that renting is cheaper overall.
If the difference stayed unchanged for three years, saving it would create $24,480 before investment returns. Buying may create home equity over those same years. The comparison must also include upfront cash, sale costs and the remaining mortgage balance.
Use the same holding period for both choices. Test a shorter stay, lower home appreciation and higher maintenance rather than relying on one favorable result. The option to invest the difference represents an assumed saving habit; switching it off shows a different household behavior.
Local taxes, insurance, HOA charges and transaction costs come from your own inputs. A manually entered tax benefit should be the verified net effect, not the amount of interest paid. This tool does not determine deductions, home-sale exclusions or whether a property fits your nonfinancial needs.
Help us understand how the site is used. You can allow or decline analytics cookies, and the calculators work either way. Learn more in the privacy policy.
