Rent vs Buy Calculator
Stack growing rent payments against mortgage P&I, ownership costs, and an equity sketch after home appreciation. Informational, not lending or investment advice.
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How to compare renting and buying
- Enter home price, down payment percent, mortgage rate, and mortgage term.
- Enter how many years to compare and today's monthly rent.
- Set rent growth, home appreciation, and annual ownership cost percent.
- Compare total rent paid to buy cash out minus ending equity.
- Ignored items include tax deductions and selling costs. Not advice.
Rent versus buy sketch
Horizon cash comparison with equity credit
| Rent path | Sum of monthly rent with annual growth |
|---|---|
| Buy cash out | Down + P&I + ownership costs over horizon |
| Equity | Appreciated value - remaining loan |
| Buy net cost | Cash out - equity |
| P&I | Amortizing payment on price - down |
| Advice | Informational. Not lending or investment advice. |
What this comparison measures
Renting spends cash on rent that may rise each year. Buying spends a down payment, monthly P&I, and ownership costs, but builds an equity sketch if the home value rises and the loan balance falls. The page compares those cash stories over a horizon you choose.
How the paths are totaled
Each month adds current rent to the rent total, then grows rent once per year. Buying adds the initial down payment, then each month adds P&I plus ownership/12 while amortizing the loan. Ending equity = price × (1 + home growth)^years - remaining balance. Buy net cost = cash out - equity.
Related pages
Payment from principal: mortgage. Investor NOI view: rental property. Affordability: mortgage affordability.
Use cases
Seven-year stay decisions. Sensitivity on rent growth versus appreciation. Teaching why equity is not free cash. Not a relocation planner.
Worked example
$400,000 home, 20% down, 6.5% for 30 years, compare 7 years, $2,200 rent growing 3%, home growing 3%, ownership 1.5% of price. The page totals both paths and labels which sketch looks cheaper on those assumptions.
Limits
No closing costs, selling costs, HOA, PMI, or tax deductions. Informational, not lending or investment advice. See the disclaimer.