Homeowner decision tool
Rent vs. buy: compare the full cost
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. Owner utilities are included on the buying side only; renter utilities, HOA fees, PMI, tax benefits, sale taxes, and investment of monthly cost differences are not modeled.
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 renter opportunity cost.
Rent + initial investment opportunity cost · 5 years
$162,402
Estimated net cost under entered assumptions
Buying · 5 years
$141,459
Estimated net cost under entered assumptions
Buying is lower in this model
Estimated difference: $20,942. 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 4The break-even is sensitive to home appreciation, rates, rent changes, and time in the home.
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Horizon and sensitivity
How the result changes
| Years | Rent + opportunity cost | Buying | Buy minus rent |
|---|---|---|---|
| 3 | $94,289 | $97,792 | $3,503 |
| 5 | $162,402 | $141,459 | -$20,942 |
| 10 | $353,272 | $248,021 | -$105,252 |
| 15 | $577,865 | $349,111 | -$228,754 |
Appreciation sensitivity · 5 years
Home appreciation: 1.0% / year
Buy minus rent: $14,676
Home appreciation: 3.0% / year
Buy minus rent: -$20,942
Home appreciation: 5.0% / year
Buy minus rent: -$59,438
Cash expenses, principal repayment, estimated equity, and appreciation are not interchangeable. Actual home value can decline; this model does not guarantee profit.
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. It does not project every possible monthly savings or portfolio strategy.