Would you be better off renting or buying?
Compare ending wealth after home equity, selling costs and investing monthly savings.
No email or phone. Inputs stay in this tab. Amounts are USD.Keep up to three named scenarios, then change the calculator for the next one. Saved comparisons stay in this tab and disappear when you leave. To save a file, choose “Save as PDF” in your browser’s print dialog.
Renting ends ahead on these assumptions
Estimates update as you change the numbers. Review the assumptions below.
See the breakdown
- Initial down payment + purchase costs
- $80,500
- First month ownership cost
- $2,655
- First month rent + insurance
- $2,020
- Mortgage balance at exit
- $240,275
Your plan over time
View exact values
| Period | Buying wealth | Renting wealth |
|---|---|---|
| Year 1 | $61,714 | $92,312 |
| Year 2 | $74,930 | $104,263 |
| Year 3 | $88,672 | $116,345 |
| Year 4 | $102,964 | $128,551 |
| Year 5 | $117,833 | $140,874 |
| Year 6 | $133,307 | $153,304 |
| Year 7 | $149,416 | $165,831 |
| Year 8 | $166,191 | $178,444 |
| Year 9 | $183,665 | $191,132 |
| Year 10 | $201,874 | $203,881 |
How to read this estimate
Both paths start with the same cash. The renter invests the buyer’s down payment and purchase costs; whichever path costs less each month invests the difference. Investments compound monthly at your assumed effective annual return.
Buying wealth includes investments plus home value after selling costs and remaining mortgage debt. Rent deposits, tax deductions, capital-gains taxes and investment taxes are excluded. Without a financing override, mortgage insurance is excluded; add it to other owner costs. With a homebuying plan, initial insurance is held constant until the loan ends, so cancellation or balance-based reductions can change the result.
Future prices, rent and investment returns are uncertain. Try flat or falling home prices and a shorter stay before deciding.
The renter’s savings belong in the comparison
The fictional example compares a $350,000 home with $2,000 monthly rent over ten years. The renter invests the buyer’s down payment and closing costs. Each month, whichever path is cheaper invests the difference.
What to look for: The ending-wealth chart includes mortgage paydown and sale costs. Keep the example, set home appreciation to 0%, and compare again. A change in the assumed return or moving date can change the answer.
The example figures above stay fixed while you edit your own scenario. Use “Load example” to restore default inputs where available.
Your next steps
- Try a shorter stay and zero home appreciation.
- Include mortgage insurance in other owner costs if it applies.
- Compare similar homes and neighborhoods, then consider flexibility and stability.
Sources & assumptions
Linked sources explain the methods and considerations. Example rates, costs and future growth assumptions are editable illustrations, not current market quotes. Reviewed September 7, 2026.
These tools provide educational estimates. Confirm terms and inputs before making a financial commitment.