Free Rent vs. Buy Calculator

Compare the potential long-term financial outcome of renting a home versus buying one. Adjust the assumptions to see how mortgage costs, rent increases, appreciation, and investment returns affect your results.

Enter Your Information

Home Purchase Price ($)Down Payment (%)Mortgage Interest Rate (%)Mortgage Term (Years)Annual Property Tax Rate (%)Annual Homeowners Insurance ($)Annual Maintenance (% of Home Value)Annual Home Appreciation (%)Buyer Closing Costs (%)Selling Costs (%)Starting Monthly Rent ($)Annual Rent Increase (%)Annual Investment Return (%)Years to Compare

Your Rent vs. Buy Results

Estimated Financial Advantage After 10 Years

$19,855.45

Renting Has the Estimated Advantage

Estimated Buyer Ending Wealth

$204,775.33

Estimated Renter Ending Wealth

$224,630.79

Initial Down Payment

$70,000.00

Buyer Closing Costs

$10,500.00

Initial Mortgage Amount

$280,000.00

Monthly Principal & Interest

$1,769.79

Projected Home Value

$470,370.73

Remaining Mortgage Balance

$237,373.15

Estimated Selling Costs

$28,222.24

Net Home Sale Proceeds

$204,775.33

Buyer Investment Account

$0.00

Renter Investment Account

$224,630.79

Buyer Ongoing Cash Outlays

$316,853.99

Renter Ongoing Cash Outlays

$247,619.79

Ending wealth compares estimated home-sale proceeds and invested savings. The model assumes both options have the same starting capital and that monthly cost differences are invested at the selected return.

Rent vs. Buy Calculator — Frequently Asked Questions

Is renting or buying financially better?

It depends on home prices, mortgage rates, rent, how long you stay, home appreciation, and the returns you might earn by investing money not spent on homeownership.

Does the calculator include home equity?

Yes. It estimates your remaining mortgage balance and projected home value, then subtracts selling costs to calculate your estimated net proceeds if you sell.

What happens if I pay off the mortgage?

The calculator stops charging mortgage payments after the loan is paid off. It continues estimating property taxes, insurance, maintenance, and home value changes.

Are the results guaranteed?

No. These are projections based on your assumptions. Actual results can vary substantially due to market conditions, taxes, repairs, investment performance, and other expenses.

Educational estimates only, not financial, tax, or investment advice. This simplified model excludes mortgage insurance, HOA fees, utilities, tax deductions, investment taxes, and changes in insurance costs. Investment returns are modeled monthly and are not guaranteed. Negative investment returns or home appreciation can produce lower ending wealth.