Rent Vs. Own Calculator

Compare the long-term financial impact of renting versus buying a home, factoring in costs and potential investment growth. Input rent, home price, mortgage rate, taxes, and maintenance to see which option better aligns with your financial goals.

Home Ownership

Rent

Typical renter's insurance costs $15-25 per month

Calculation Period and Economic Factors

Affects rent, maintenance, insurance, and property tax
How much home values increase annually
Expected return on invested savings

Advanced

Applied to investment gains
Year when investment gains are taxed

Advanced

Total commission percentage for sale
Other fees and costs associated with sale
Reset Values

Detailed Analysis by Year

Year Monthly Payment Yearly Own Cost Yearly Rent Cost Future Home Value Owner’s Final Net Worth Renter’s Final Net Worth
  1. - Selling a primary home is often Tax Free, whereas investments can be taxed depending on your tax bracket. This can have a significant affect on net worth.
  2. - Monthly payments assume that whether you rent or own, your expenses are the same. If renting, any excess is invested.
  3. - Monthly payments drop significantly once home is paid for but rent continues.
  4. - Net Worth (Owning) includes closing costs (5% commission + $10,000 fees) when selling the property.
  5. - Net Worth (Renting) grows based on both monthly payments and market growth, not just the initial down payment and market gains.

This tool is intended for informational purposes only and should not be considered financial advice. The calculations are based on general assumptions and do not take into account your specific financial situation, tax obligations, or other critical factors.