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MoneyBasis

Rent vs Buy Calculator

Compare two financial scenarios using your own assumptions.

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Compare the two paths

Buying
Ownership costs
Renting
Comparison assumptions

Nothing is uploaded when you calculate.

Your estimate will appear here

Enter housing costs and your horizon to compare buying with renting and investing. Select Calculate to see your estimate.

What you’ll see

  • Buyer and renter positions
  • Housing costs
  • Crossover estimate

Difference at your time horizon, Buyer net position, Renter net position

Understand your result

Buyer net position

Estimated home value minus remaining mortgage balance. Selling costs and tax effects are not modeled.

Renter net position

Estimated portfolio built by investing the down payment, closing-cost estimate and monthly cost difference.

How this calculation works
  1. Enter home price, down payment, mortgage rate, monthly rent and how long you expect to stay.
  2. Adjust rent growth, appreciation and investment-return assumptions. Those values are user-selected assumptions, not forecasts.
  3. Compare the buyer’s estimated home equity with a renter who invests the difference.
Buyer net worth = home value − loan balance + owner portfolio; renter net worth = renter portfolio.

Both sides start with equal resources. The renter invests the down payment and closing costs; the buyer starts with down-payment equity. Each month whichever side spends less invests the difference. Appreciation, rent growth and investment returns are user-adjustable assumptions, not forecasts.

Rent vs buy
This calculator compares estimated long-term financial outcomes of renting and buying using the prices, rates, rent, appreciation and investment-return assumptions you enter.
Assumptions & limitations
  • Closing costs are estimated at 3% of the home price as a planning default.
  • Annual property tax is 1.2% of the original price, scaled with appreciation, as a planning default — not a sourced local tax rate.
  • Insurance is 0.5% and maintenance is 1.0% of the original price, also scaled.
  • The loan has your selected fixed term; payments stop at payoff. Returns use nominal annual rates divided by 12. Appreciation is effective annual growth.
  • Selling costs, tax deductions and moving costs are not modeled.

Educational estimates only. MoneyBasis does not provide financial, investment, tax or legal advice.

Sources

Frequently asked questions

Why can the crossover be later than my selected horizon?
The crossover searches at least 30 years, or your longer selected horizon, and can reverse later. The two headline positions still show only your selected year.
What does renting plus investing represent?
The renter scenario includes investing the modeled upfront and ongoing savings relative to buying, using your selected return assumption.
Is it better to rent or buy a home?
It depends on prices, rates, rent, how long you stay, and investment returns. This calculator compares buyer equity with a renter’s investment portfolio using the assumptions you enter. Those assumptions are not predictions.

See a worked example

Home & Mortgage · 6 min read

Rent vs Buy: Compare Cash Costs, Equity and Opportunity Cost

Follow the same starting money and monthly resources down two housing paths.

Read guide →

Two paths with equal starting resources

Buy
Equity + investments
Rent
Investment portfolio

Compare the full financial picture, beyond rent versus mortgage.

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