Rent vs Buy Calculator

How to use the rent vs buy calculator

The renter begins by investing the unused down payment and purchase closing costs. Each month, whichever scenario has the lower housing cost invests the difference. The buyer pays mortgage principal and interest, property tax, maintenance, insurance and any association fee. At the horizon, buyer net assets include the home’s modeled sale value less selling costs and remaining mortgage debt, plus invested monthly savings. Renter net assets are the investment balance.

Does the result predict the housing market?

No. Home growth, rent growth and investment return are assumptions you choose. Change each one to see how sensitive the comparison is. Mortgage rates are held constant and renewals are not modeled.

What important costs are excluded?

Investment and capital-gains taxes, rent deposits, mortgage insurance, moving expenses and unplanned repairs are excluded unless reflected in your entered costs. The tool compares financial scenarios, not lifestyle preferences.

How should I compare scenarios?

Start with the example, then replace every relevant value with your own figures. Keep the currency and time periods consistent. Change one assumption at a time and calculate again to see its effect. The initial values are examples, not recommended rates, prices or budgets. When comparing alternatives, include the same categories in each scenario so that a missing expense does not make one choice appear cheaper.

Can I save or share the result?

Use Copy summary for a concise text result, or Export CSV for the available figures. Calculations run in your browser; entered amounts are not uploaded by this tool. An exported file contains your information, so choose where to store or share it. Displayed amounts are rounded to two decimal places, while most intermediate calculations retain additional precision. Small differences from a bill or statement can therefore occur.

What should I check before using the numbers?

Read the calculation assumptions beside the result and confirm the inputs against the relevant quote, agreement or records. This tool provides an estimate based on those inputs, not an approval, market forecast or personalized financial recommendation. Refresh the calculation when your circumstances or the underlying terms change.