Rent vs. Buy Calculator
Buying has upfront costs renting doesn't. This calculator finds the year those costs are paid back through appreciation and equity, so you can see your real breakeven point.
- Year 1 cost — buying$0
- Year 1 cost — renting$0
- Net worth if you buy & stay 7 yrs$0
- Net worth if you rent & invest 7 yrs$0
| Year | Buy: net position | Rent: net position | Advantage |
|---|
What "net position" means here
For buying, net position is your home's projected value minus what you'd still owe and minus what it would cost to sell (agent commission, closing costs) — in other words, your equity if you cashed out that year, after subtracting the down payment and closing costs you put in upfront.
For renting, net position assumes you invest the money you didn't spend on a down payment and closing costs, plus you invest the monthly difference any time renting is cheaper than owning, growing at the same rate as home appreciation for a fair comparison.
Curious about the monthly payment behind the buy scenario? Check the mortgage calculator, or see what cash you'd need upfront with the closing costs estimator.