Rent or buy calculator
Buying
Repairs and maintenance. A renter does not pay this.
Closing costs, paid once.
Agent fees and the like, paid when you leave.
Renting
Your guesses about the future
What the down payment would earn if it were not in the house.
Buying comes out ahead after
10 years
On these figures, leaving sooner than that leaves the renter better off.
- Owning, first month
- $2,889
- Renting, first month
- $2,200
- Buyer after 7 years
- $173,101
- Renter after 7 years
- $186,462
What each would be worth
The buyer’s figure is after selling the home and clearing the loan.
| Yr | Buyer | Renter | Buyer lead |
|---|---|---|---|
| 1 | $70,857 | $105,181 | -$34,325 |
| 2 | $86,291 | $118,485 | -$32,194 |
| 3 | $102,330 | $131,902 | -$29,572 |
| 5 | $136,332 | $159,029 | -$22,697 |
| 7 | $173,101 | $186,462 | -$13,362 |
| 10 | $234,029 | $227,919 | $6,110 |
| 15 | $354,189 | $297,112 | $57,077 |
| 20 | $518,460 | $379,198 | $139,262 |
| 30 | $1,068,429 | $617,674 | $450,755 |
This compares what each household would be worth, not which payment is lower. Both start with the same cash and spend the same each month; whoever has money left over invests it. The answer rests on your three guesses about the future — home prices, rents and investment returns — held steady for 30 years, which the real world will not do. It leaves out income tax, tax on gains, mortgage insurance and renter’s insurance, and keeps home insurance flat. An estimate, not advice.