Rent vs Buy Calculator
Compare the long-term financial impact of renting versus buying. Find your break-even year and see how net worth compares over 5 to 30 years.
| Year | Home Value | Home Equity | Renter Portfolio | Rent Cumulative | Winner |
|---|---|---|---|---|---|
| 5 | $415,690 | $152,838 | $123,194 | $127,419 | Buy |
| 10 | $493,710 | $254,867 | $172,492 | $275,133 | Buy |
| 15 | $586,372 | $381,145 | $232,666 | $446,374 | Buy |
| 20 | $696,426 | $538,265 | $313,831 | $644,889 | Buy |
| 25 | $827,136 | $734,872 | $423,312 | $875,022 | Buy |
| 30 | $982,378 | $982,378 | $570,984 | $1,141,810 | Buy |
Cumulative rent vs cumulative buy costs year by year, showing when each option gets more expensive.
| Year | Cumulative Rent Paid | Cumulative Buy Cost | Home Value | Home Equity | Renter Portfolio | Difference |
|---|---|---|---|---|---|---|
| 1 * | $24,000 | $100,343 | $362,250 | $85,234 | $80,838 | +$4,396 |
| 3 | $74,182 | $161,029 | $388,051 | $117,641 | $102,271 | +$15,370 |
| 5 | $127,419 | $221,714 | $415,690 | $152,838 | $123,194 | +$29,644 |
| 7 | $183,899 | $282,400 | $445,298 | $191,093 | $143,342 | +$47,750 |
| 9 | $243,819 | $343,086 | $477,014 | $232,702 | $162,471 | +$70,231 |
| 11 | $307,387 | $403,772 | $510,989 | $277,996 | $183,131 | +$94,865 |
| 13 | $374,827 | $464,458 | $547,385 | $327,341 | $206,418 | +$120,924 |
| 15 | $446,374 | $525,143 | $586,372 | $381,145 | $232,666 | +$148,479 |
| 17 | $522,278 | $585,829 | $628,136 | $439,860 | $262,252 | +$177,609 |
| 19 | $602,805 | $646,515 | $672,875 | $503,993 | $295,599 | +$208,394 |
| 21 | $688,236 | $707,201 | $720,801 | $574,107 | $333,188 | +$240,919 |
| 23 | $778,869 | $767,887 | $772,140 | $650,832 | $375,556 | +$275,276 |
| 25 | $875,022 | $828,572 | $827,136 | $734,872 | $423,312 | +$311,560 |
| 27 | $977,031 | $889,258 | $886,048 | $827,014 | $477,140 | +$349,874 |
| 29 | $1,085,252 | $949,944 | $949,157 | $928,141 | $537,813 | +$390,328 |
| 30 | $1,141,810 | $980,287 | $982,378 | $982,378 | $570,984 | +$411,394 |
| Year | Buy: Cum. Paid | Home Value | Buy Net Worth | Rent: Cum. Paid | Rent Portfolio | Winner |
|---|---|---|---|---|---|---|
| 1 | $110,843 | $362,250 | $85,234 | $24,000 | $91,985 | Rent |
| 2 | $141,186 | $374,929 | $101,105 | $48,720 | $103,439 | Rent |
| 3 | $171,529 | $388,051 | $117,641 | $74,182 | $114,837 | Buy |
| 4 | $201,872 | $401,633 | $134,875 | $100,407 | $126,152 | Buy |
| 5 | $232,214 | $415,690 | $152,838 | $127,419 | $137,357 | Buy |
| 6 | $262,557 | $430,239 | $171,565 | $155,242 | $148,419 | Buy |
| 7 | $292,900 | $445,298 | $191,093 | $183,899 | $159,306 | Buy |
| 8 | $323,243 | $460,883 | $211,458 | $213,416 | $169,981 | Buy |
| 9 | $353,586 | $477,014 | $232,702 | $243,819 | $180,465 | Buy |
| 10 | $383,929 | $493,710 | $254,867 | $275,133 | $191,596 | Buy |
How to Use This Rent vs Buy Calculator
Enter your renting and buying scenarios side by side to find your financial break-even point.
Quick Compare Tab
Enter Monthly Rent and Annual Rent Increase on the renting side, and Home Price, Down Payment %, Mortgage Rate, and Home Appreciation on the buying side. The calculator shows the break-even year (when buying's equity first exceeds the renter's investment portfolio) and a comparison table for key years. Click "More options" to customize maintenance rate, insurance, property tax, and investment return assumptions.
Detailed Analysis Tab
This tab shows a full year-by-year breakdown comparing home equity growth versus a renter's investment portfolio, with the break-even year highlighted in green. Use this to see how sensitive the outcome is to your assumptions.
How the Calculation Works
Renter's Monthly Cost = Current Rent × (1 + Annual Increase)^year
Buyer's Net Worth = Home Equity = Home Value − Remaining Loan Balance
Home Value(year n) = Purchase Price × (1 + Appreciation)^n
Renter's Net Worth = Investment Portfolio
Renter invests the down payment + monthly cost savings vs buying
Portfolio grows at the assumed investment return rate
Break-Even Year = First year where Buyer Net Worth ≥ Renter Net Worth
The model assumes the renter invests the down payment they would have used, plus any monthly cost difference between renting and buying, in a diversified investment portfolio. This is a key assumption — if the renter doesn't invest, buying wins much sooner.
Example: Austin, TX — Rent $2,000 vs Buy $350,000
Alex's Decision — Austin, TX
Alex pays $2,000/month rent with 3% annual increases. They could buy a $350,000 home with 20% down at 6.75% with 3.5% appreciation.
| Monthly Rent | $2,000 |
| Rent at Year 10 | $2,688 |
| Rent at Year 20 | $3,613 |
| Monthly Mortgage (P&I) | $1,816 |
| Total Monthly Buy Cost | ~$2,700 |
| Down Payment Invested | $70,000 → ~$254K (30 yrs at 6%) |
| Home Value at Year 30 | ~$986,000 |
| Home Equity at Year 30 | ~$986,000 |
| Break-Even Year | ~Year 7 |
In this scenario, Alex's monthly cost to buy is higher than rent initially. But the mortgage payment stays fixed while rent rises 3% annually. By year 7, home equity surpasses the renter's investment portfolio. By year 30, the homeowner is ahead by approximately $500,000.