Free Rent vs Buy Calculator - Compare Your Options
Compare the financial impact of renting vs buying with investor-focused analysis and ROI projections.
Formula & Methodology
This calculator equalizes cash flow by assuming any money saved by renting (or buying) is invested in the market at a set return rate, providing a true apples-to-apples comparison of final net worth.
- Buying Net Worth = (Home Value - Mortgage Balance) × (1 - Selling Costs) + Investments
- Renting Net Worth = Total Investment Portfolio Value
Worked Example
Using the Rent vs Buy Calculator: apply the formula above to your input values. For instance, Buying Net Worth = (Home Value - Mortgage Balance) × (1 - Selling Costs) + Investments, then Renting Net Worth = Total Investment Portfolio Value. The tool performs each step instantly and shows the result.
Frequently Asked Questions
Is it better to rent or buy?
It depends on how long you stay, local prices, rates and rent; this tool compares the total cost of each over your time horizon.
What costs does buying add beyond the mortgage?
Property taxes, insurance, maintenance and closing costs all add up and are easy to underestimate when comparing to rent.
What is the break-even point for buying?
It is the number of years you need to own before buying becomes cheaper than renting, after accounting for all costs.