Rent vs. Buy Calculator

Compare renting and buying over a 30-year horizon, including opportunity cost and sale proceeds.

Compare the terminal wealth from renting and investing the difference versus buying and selling a home.

Result

First year buying leads7

Buyer equity after 30 years$912,650.69

Renter terminal wealth after 30 years$261,300.80

Tax benefit is an explicit simplified itemized-deduction model above the entered standard deduction; SALT caps, loan limits, capital-gains tax, and filing-specific phaseouts are not applied. Portfolio invests each monthly cash-flow difference.

Calculation details

Scroll horizontally or vertically to see more. Download CSV for the complete schedule.

Year	Buyer equity after sale	Renter portfolio + deposit	Buying advantage	Cumulative buying outlay	Cumulative renting outlay
1	71,209.64	103,365.45	-32,155.81	125,322.74	28,800.00
2	87,000.05	114,695.76	-27,695.72	158,851.48	56,196
3	103,396.33	125,969.02	-22,572.70	192,590.34	84,411.84
4	120,424.81	137,161.57	-16,736.76	226,543.52	113,472.07
5	138,113.11	148,247.87	-10,134.76	260,715.31	143,401.99
6	156,490.21	159,200.46	-2,710.24	295,110.09	174,227.65
7	175,586.54	169,989.76	5,596.78	329,732.30	205,975.86
8	195,434.02	180,584.01	14,850.00	364,586.50	238,674.27
9	216,066.18	190,949.10	25,117.08	399,677.33	272,351.33
10	237,518.24	201,048.42	36,469.82	435,009.53	307,036.36
11	259,827.19	210,842.74	48,984.45	470,587.91	342,759.55
12	283,031.88	220,290.05	62,741.83	506,417.41	379,552.00
13	307,173.17	229,345.38	77,827.80	542,503.04	417,445.73
14	332,293.98	237,960.62	94,333.36	578,849.93	456,473.75
15	358,439.45	246,084.37	112,355.07	615,463.30	496,670.01
16	385,657.02	253,661.72	131,995.30	652,348.48	538,069.52
17	413,996.61	260,634.04	153,362.57	689,510.91	580,708.33
18	443,510.72	266,938.78	176,571.94	726,956.14	624,623.56
19	474,254.59	272,509.23	201,745.35	764,689.82	669,853.44
20	506,286.35	277,274.32	229,012.03	802,717.71	716,437.36
21	539,667.19	281,158.30	258,508.89	841,045.71	764,415.89
22	574,461.51	284,080.52	290,380.99	879,679.81	813,830.80
23	610,737.14	285,955.16	324,781.99	918,626.14	864,725.12
24	648,565.50	286,690.88	361,874.62	957,890.95	917,143.19
25	688,021.82	286,190.57	401,831.25	997,480.59	971,130.64
26	729,185.35	284,350.99	444,834.36	1,037,401.57	1,026,734.50
27	772,139.59	281,062.42	491,077.17	1,077,660.52	1,084,003.19
28	816,972.56	276,208.32	540,764.24	1,118,264.19	1,142,986.60
29	863,776.99	269,664.91	594,112.09	1,159,219.48	1,203,736.09
30	912,650.69	261,300.80	651,349.89	1,200,533.42	1,266,304.59

How to use this calculator

Compare the terminal wealth from renting and investing the difference versus buying and selling a home. Enter amounts in the units shown, select the applicable options, and click Calculate. Use Reset to restore the starting values.

Calculation formula

Compare buyer equity after sale with the renter portfolio, adding monthly cash-flow differences.

Assumptions and accuracy

Review timing, rates, fees and result notes when comparing scenarios. Future returns and rates are assumptions rather than guaranteed outcomes. Monetary display follows the currency’s precision; intermediate calculations retain additional digits.

Choose what to calculate

Rent vs buy calculator with investment returns

Compare renting with buying over a holding period, including ownership costs, home equity and investing cash-flow differences. Tax benefits use a simplified model.

Related searches: Rent vs buy calculator

Open this calculation

Understanding this calculation

Compare home equity after selling with a renter's modeled terminal wealth. Monthly cash-flow differences, opportunity cost, appreciation and transaction costs all influence the comparison.

Worked examples

Equity after the fixed 30-year rent-versus-buy comparison

Illustrative inputs are specified in the steps below; the example link loads the complete settings. Unmentioned settings use the linked defaults.

An all-cash 120,000 home with no appreciation or selling costs still leaves 120,000 equity after the fixed 30-year comparison horizon. This isolates owner equity, not overall profit or a general recommendation to buy.

Buyer equity after 30 years: 120,000 USD.

Try these inputs

Common questions

Why is comparing rent with the mortgage installment incomplete?

Ownership can add taxes, insurance, maintenance and transaction costs. Renting can leave money available for investment.

Can I choose any rent-versus-buy comparison horizon?

The current result horizon is 30 years. Do not interpret the mortgage term input as a general switch for the comparison horizon.

Scope and assumptions

The current comparison reports a fixed 30-year horizon. Entered appreciation, returns and costs are assumptions; tax treatment is simplified and personal flexibility is not priced.

Sources

Calculation notes checked October 20, 2026. Examples are mathematical checks under the stated assumptions.

Calculation methods and formulas

Rent vs. Buy