World Economy · Free tools

Rent vs. buy calculator

No account, email or phone. Planning estimates, not quotes or personalized advice.

Open full calculator, sources & methodology ↗

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.

Example numbers are loaded. Replace them with your own situation.

Home & mortgage
Illustrative fixed rate; use a lender quote.
Rent & your time horizon
Hypothetical effective return; neither guaranteed nor a forecast.
Example result

Renting ends ahead on these assumptions

Buying: modeled ending wealth$201,874
Renting: modeled ending wealth$203,881
Difference in buying’s favor-$2,007
First year buying is aheadAnnual checkpoints only; later reversals are possible.

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

Buying wealthRenting wealth
Year 1Year 10
View exact values
Scenario values over time
PeriodBuying wealthRenting 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.