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 $40-50 per month
Utilities paid separately from rent

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

Owning may lead temporarily, but renting can retake the lead if investment growth outpaces home equity growth after costs.

Detailed Analysis by Year

Year Own Rent Comparison
Monthly Pmt Annual Cost Home Value Net Worth Investments Annual Cost Net Worth Investments Own Advantage Lead
  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. - Rent costs include monthly rent, renter's insurance, and utilities. The lower-cost option invests the annual difference, so renting and owning are compared on the same cash-flow basis.
  3. - Monthly payments drop significantly once home is paid for but rent continues.
  4. - Net Worth (Owning) includes the commission and closing costs you enter when selling the property. This is on by default because ownership advantage assumes you could sell in that year.
  5. - Investment Value columns show the invested cash-flow difference for each option. The renter starts with the down payment invested.

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.