Real Estate
Rent vs. Buy Calculator
Should you rent or buy? Compare your wealth after renting or buying a home over the years you'll stay, and see the year buying pulls ahead.
Renting comes out ahead by
$14,861
after 10 years
Wealth if you buy
$234,029
after selling and loan payoff
Wealth if you rent
$248,890
invested savings
Buying pulls ahead
Year 14
Cost to own
$2,873
first month, all-in
Total rent paid
$302,646
Total cost of owning
$359,646
excluding the down payment
After 10 years, renting leaves you about $14,861 better off than buying: $248,890 of wealth for the renter, against $234,029 for the buyer once the home is sold and the loan paid off.
With these assumptions, buying pulls ahead for good from year 14.
The comparison assumes the renter invests the $92,000 the buyer puts in up front, and that whoever pays less each month invests the difference at 6.0% a year. Taxes are not included.
Your numbers
+Advanced options
Wealth over time: buying vs. renting
See how long you stay changes the answer
Same home, rent and assumptions — three different lengths of stay. Buying and selling costs weigh heavily on short stays and fade over long ones.
Stay 5 years
Renting ahead by
$29,220
Stay 20 years
Buying ahead by
$52,599
Stay 30 years
Buying ahead by
$216,878
How the comparison works
Advantage of buying = (Home value − Selling costs − Loan balance + Buyer's savings) − Renter's savings
Both households start with the same money. The buyer spends the down payment and buying costs; the renter invests that same amount. Every month, the buyer pays the mortgage, property tax, insurance, maintenance and HOA dues, and the renter pays rent. Whichever is cheaper that month invests the difference, so neither side gets free money.
At the end, the buyer's wealth is the home's value minus selling costs and the remaining loan, plus their invested savings; the renter's wealth is their invested savings. Home prices grow at your appreciation rate; rent, insurance and HOA dues rise once a year; property tax and maintenance follow the home's value; investments compound monthly at the annual return ÷ 12. Taxes are not modeled.
How to think about renting vs. buying
Comparing a mortgage payment with a rent payment is the most common way to frame this decision, and the most misleading. Part of each mortgage payment repays the loan and stays yours, while property tax, insurance and maintenance are pure costs that rent already includes. And the money a buyer ties up in a down payment could have been earning a return somewhere else.
Time is the biggest lever. Buying and selling a home costs several percent of its price each way, so a short stay rarely gives rising prices and loan repayment enough time to make up for it. The longer you stay, the more those one-off costs fade into the background.
The price-to-rent ratio sets the starting point. Where homes are expensive compared with rents, renting and investing tends to win for longer; where they are cheap compared with rents, buying wins sooner.
Money is not the whole decision. Owning brings stability and the freedom to change the home; renting brings flexibility and no repair bills. The calculator only measures the money, so use it to see what your choice costs or earns, then weigh the rest yourself. To look at the mortgage on its own, use the mortgage calculator.
Rent vs. Buy FAQ
Is it better to rent or buy a home?+
It depends mostly on how long you stay, the price compared with the rent, the mortgage rate, how fast home prices rise, and what your money would earn invested instead. Buying and selling costs make short stays expensive for owners; over long stays, paying down the loan and rising prices usually favour buying. The calculator shows where that tipping point falls for your numbers.
What does "buying pulls ahead" mean?+
It is the first year from which buying leaves you with more wealth than renting and stays ahead. If you expect to move before that year, renting and investing the difference would have left you better off under these assumptions.
Why does the renter's investment return matter so much?+
A buyer puts the down payment and closing costs into the home; a fair comparison assumes the renter invests that same money instead, plus whatever they save each month when renting is cheaper. The higher that money earns, the stronger renting looks. Try a cautious and an optimistic return to see how much the answer depends on it.
What does the calculator leave out?+
Taxes are not included: no mortgage interest deduction, no tax on investment gains or on the sale of the home, and no renters' or owners' tax breaks, because they depend on where you live and your situation. It also assumes steady price growth, rent increases and investment returns, which real markets never deliver. Treat the result as a comparison of your assumptions, not a forecast.
Does it include PMI or a renter's deposit?+
No. Private mortgage insurance (often charged with less than 20% down) and a rental security deposit are left out. You can approximate PMI by adding it to the home insurance figure.
Learn more
- Rent vs. buy: why the answer depends on how long you stayBuying costs more up front and pays off with time. The price-to-rent ratio and your time horizon tell you which side wins.
- French notary fees: how much to budget when you buy a home"Notary fees" in France are mostly taxes. Here's what they include, why they are lower on new homes, and how much to set aside.
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Educational tool, not advice. This calculator illustrates a standard formula using the numbers you enter. It does not account for your full financial picture, taxes, or local market conditions, and it is not a recommendation to buy, sell, or hold any asset. Speak with a licensed professional before making investment decisions.
See our full disclaimer and how we calculate.
Last reviewed 2026-10-16 by the Yield Analyst team