Rent vs Buy Calculator

Move four sliders. See if buying wins over 5, 10, or 15 years.

Monthly rentwhat they pay now

$500$10,000

Home pricewhat they're considering

$100,000$3,000,000

Down paymentpercent of price

0%50%

Mortgage rate30-year fixed

3%12%

Horizon

Renting wins by

$43,218

over 10 years on these assumptions.

Past performance does not guarantee future results.

This comparison is for educational purposes only. It is not financial, tax, or investment advice. Consult a licensed mortgage professional before making a housing decision.

Tax benefit shown depends on itemizing deductions; consult your tax advisor about whether the mortgage interest deduction applies to your return.

Property tax, insurance, HOA, and maintenance figures are modeled estimates. Actual amounts vary by property, lender, insurer, and jurisdiction.

Rates, APR, and loan terms shown are illustrative only; actual rates and terms depend on your creditworthiness, property, lender, and market conditions at the time of application.

This is not a Loan Estimate, a commitment to lend, or a guarantee of any specific terms.

Year by year

Year	Rent / mo	PITI / mo	Equity at EOY
1	$3,200	$5,284	$112,194
2	$3,312	$5,307	$151,088
3	$3,428	$5,330	$191,767
4	$3,548	$5,354	$234,316
5	$3,672	$5,378	$278,829
6	$3,801	$5,403	$325,400
7	$3,934	$5,429	$374,133
8	$4,071	$5,456	$425,135
9	$4,214	$5,483	$478,518
10	$4,361	$5,511	$534,401

At year 10

Total spent on rent: $450,485
Total spent on housing (incl. down + closing): $808,500
Home equity at year 10: $534,401
Renter's investment gains (growth only): $124,949
Tax savings (interest deduction): $0
Opportunity cost on down payment + closing costs: $94,656

When buying catches up

On these assumptions, the total cash spent buying does not catch up to the total cash spent renting within 10 years. Push the horizon longer or revisit the inputs.

Assumptions used in this comparison

Annual home appreciation: 4.00% per year (assumption, not a guarantee)
Annual rent escalation: 3.50% per year (assumption, not a guarantee)
Mortgage interest rate: 6.75% fixed, 30-year term (illustrative quote, not a Loan Estimate)
Federal tax bracket for interest deduction: 0.00% marginal (assumed)
Property tax: 1.10% of home value in year 1, escalating 2.00% per year (CA Prop 13 reference)
Homeowners insurance: 0.35% of home value in year 1, escalating 4.00% per year (estimate)
Monthly HOA: $0 per month (assumed; varies by property)
Annual maintenance reserve: 0.75% of home value per year (industry rule of thumb)
Buyer-side closing costs: 2.50% of home price, paid at close (lender, title, escrow, recording, transfer tax, prepaids)
Opportunity-cost return on down payment + closing costs: 7.00% per year, compounded monthly (assumed alternative-investment return on the buyer's upfront cash)
Renter's monthly cash-flow surplus: Reinvested at 7.00% per year, compounded monthly. When PITI + maintenance exceeds rent, the renter has cash left over each month; we credit them for investing it at the same monthly-compounding opportunity rate used for the buyer's upfront cash.
Analysis horizon: 10 years

Past performance does not guarantee future results.
This comparison is for educational purposes only. It is not financial, tax, or investment advice. Consult a licensed mortgage professional before making a housing decision.
Tax benefit shown depends on itemizing deductions; consult your tax advisor about whether the mortgage interest deduction applies to your return.
Property tax, insurance, HOA, and maintenance figures are modeled estimates. Actual amounts vary by property, lender, insurer, and jurisdiction.
Rates, APR, and loan terms shown are illustrative only; actual rates and terms depend on your creditworthiness, property, lender, and market conditions at the time of application.
This is not a Loan Estimate, a commitment to lend, or a guarantee of any specific terms.

Send this to your lead

Forat

Year

Rent / mo

PITI / mo

Equity at EOY

$3,200

$5,284

$112,194

$3,312

$5,307

$151,088

$3,428

$5,330

$191,767

$3,548

$5,354

$234,316

$3,672

$5,378

$278,829

$3,801

$5,403

$325,400

$3,934

$5,429

$374,133

$4,071

$5,456

$425,135

$4,214

$5,483

$478,518

$4,361

$5,511

$534,401

Assumptions used in this comparison

Annual home appreciation

4.00% per year (assumption, not a guarantee)

Annual rent escalation

3.50% per year (assumption, not a guarantee)

Mortgage interest rate

6.75% fixed, 30-year term (illustrative quote, not a Loan Estimate)

Federal tax bracket for interest deduction

0.00% marginal (assumed)

Property tax

1.10% of home value in year 1, escalating 2.00% per year (CA Prop 13 reference)

Homeowners insurance

0.35% of home value in year 1, escalating 4.00% per year (estimate)

Monthly HOA

$0 per month (assumed; varies by property)

Annual maintenance reserve

0.75% of home value per year (industry rule of thumb)

Buyer-side closing costs

2.50% of home price, paid at close (lender, title, escrow, recording, transfer tax, prepaids)

Opportunity-cost return on down payment + closing costs

7.00% per year, compounded monthly (assumed alternative-investment return on the buyer's upfront cash)

Renter's monthly cash-flow surplus

Reinvested at 7.00% per year, compounded monthly. When PITI + maintenance exceeds rent, the renter has cash left over each month; we credit them for investing it at the same monthly-compounding opportunity rate used for the buyer's upfront cash.