Homeowner decision tool
Rent vs. buy: compare your planning assumptions
A home is more than a mortgage payment. Compare renter cash costs with ownership costs, transaction expenses, investment opportunity cost, and estimated sale proceeds—using assumptions you can change.
This tool compares scenarios; it does not recommend that you buy or rent. Home prices can fall, appreciation is not guaranteed, and taxes, insurance, maintenance, local fees, investment returns, and actual transaction costs vary. Enter only the extra utility expense of owning compared with renting; utility costs common to both options are omitted. HOA fees, PMI, renter insurance, tax benefits, sale taxes, and investment of monthly cost differences are not modeled.
Revisiting an older saved scenario or share link? Its utility amount may represent the full owner bill. Replace it with only the extra cost versus renting before comparing results. Saved results are snapshots; recalculate after model updates.
Your assumptions
Enter comparable costs
Adjust every assumption to match your situation. Starting values are illustrative model inputs, not current market averages.
Net cost comparison
Choose a time horizon
Includes transaction costs, mortgage, taxes, insurance, maintenance, rent increases, estimated sale costs, and returns on the renter’s initial investment.
Rent minus initial investment gains · 5 years
$117,921
Estimated net cost under entered assumptions
Buying · 5 years
$122,347
Estimated net cost under entered assumptions
Renting is lower in this model
Estimated difference: $4,426. This is a comparison of the assumptions entered, not financial advice or a recommendation.
Estimated equity at sale: $143,635 · Assumed sale price: $405,746 · Remaining mortgage: $262,111
Break-even estimate: the model first favors buying at year 6The break-even is sensitive to home appreciation, rates, rent changes, and time in the home.
Share link includes your assumptions in its URL. Save to account stores this comparison under your signed-in account.
Horizon and sensitivity
How the result changes
| Years | Rent minus investment gains | Buying | Buy minus rent |
|---|---|---|---|
| 3 | $68,911 | $86,664 | $17,753 |
| 5 | $117,921 | $122,347 | $4,426 |
| 10 | $252,020 | $206,751 | -$45,270 |
| 15 | $404,158 | $282,155 | -$122,002 |
Appreciation sensitivity · 5 years
Home appreciation: 1.0% / year
Buy minus rent: $40,045
Home appreciation: 3.0% / year
Buy minus rent: $4,426
Home appreciation: 5.0% / year
Buy minus rent: -$34,069
Cash expenses, principal repayment, estimated equity, and appreciation are not interchangeable. Actual home value can decline; negative equity is debt above the home value. Gains on invested down payment and buyer closing costs reduce renting’s modeled net cost; losses increase it. Ongoing monthly savings, PMI, HOA fees, and tax effects are not modeled. This is a simplified comparison, not a profit guarantee.
Frequently asked questions
Using a rent-versus-buy model
Does a shorter break-even estimate mean I should buy?
No. The estimate only compares the assumptions you enter. Job stability, cash reserves, taxes, maintenance, personal plans, local housing conditions, and risk tolerance are not fully captured.
Is home appreciation guaranteed?
No. The sensitivity analysis varies the appreciation assumption, but actual home value can fall and selling costs can differ from the model.
What investment opportunity cost is included?
The model estimates potential growth on the down payment and buyer closing costs if that initial capital were invested instead. Investment gains reduce renting’s net cost and losses increase it. The model does not invest monthly cash-flow differences or simulate a portfolio strategy.