Rent vs. Buy Calculator
Compare the long-term net worth of renting vs. buying a home. Factor in mortgage rates, property appreciation, inflation, and investment opportunity costs—then see when buying pulls ahead.
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Why people use this
Parallel paths
Rent vs buy
Break-even
Year-by-year
Opportunity cost
Invested down payment
Visualize your financial strategy. Draw out your business milestones and debt payoff workflows using MapDiagram.
Map your workflow visually →How it works
Each year, we compare renter net worth (down payment invested minus cumulative rent) with buyer net worth (home equity after appreciation and amortization). The break-even year is when buying first shows higher net worth.
Factors considered
- Rent and renter insurance with annual increases
- Mortgage P&I, property tax, and maintenance on the buy path
- Home price appreciation and remaining loan balance
- Opportunity cost: compound growth on the down payment if you rent
Closing costs, HOA, tax deductions, and sale transaction costs are not included. For directional planning only.
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Loan Tool FAQ
How should I compare calculator outputs?
Compare monthly payment, total interest, and payoff speed together.
Can this tool help with planning extra payments?
Yes. Test baseline and accelerated scenarios to estimate savings.