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Rent vs. Buy Calculator

Compare home-sale equity with a renter portfolio under explicit cost assumptions.

Your numbers

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Buying advantage over renting
-$7,485.27

USD · rounded to the nearest cent

Owner equity after selling$142,910.69
Renter comparison portfolio$150,395.96
Total rent paid$210,234.64
Owner cash paid$316,819.75

Positive favors buying under your assumptions; negative favors renting. No tax deductions, PMI, rent deposits or moving costs. Tax, insurance and HOA stay fixed; rent adjusts annually and home value monthly. Scenario comparison, not advice.

Your calculation, step by step

No black boxes
  1. Mortgage principal = 240,000 USD; monthly payment = 1,438.92126 USD.
  2. The renter starts with the down payment plus purchase closing costs invested.
  3. Each month, invest the difference between owner cash costs and rent; apply the entered investment return. Negative balances represent a funding shortfall at the same modeled rate.
  4. After 10 years: owner net sale equity − renter portfolio = -7,485.27336 USD.
Detailed results · 10 entries
YearOwner net equity (USD)Renter portfolio (USD)Buying advantage (USD)
1$50,587.23$77,203.57-$26,616.35
2$59,469.03$85,411.92-$25,942.89
3$68,658.89$93,618.65-$24,959.76
4$78,170.99$101,816.97-$23,645.97
5$88,020.33$109,999.68-$21,979.35
6$98,222.71$118,159.16-$19,936.44
7$108,794.83$126,287.33-$17,492.49
8$119,754.30$134,375.63-$14,621.34
9$131,119.70$142,415.03-$11,295.33
10$142,910.69$150,395.96-$7,485.27

What if things were different?

Save up to three scenarios, then change your inputs to compare the possibilities.

How to use this calculator

  1. Enter your own values in the labeled fields. Check the units and assumptions before comparing results. Only the fields needed for your selected calculation mode are shown.
  2. Your answer updates automatically. Review the calculation steps to see exactly how it was calculated.
  3. Copy, share, save, or download your result. Saved inputs stay on this device.

How the calculation works

Buying advantage = net home-sale equity − renter comparison portfolio

The renter starts by investing the down payment and purchase closing costs. Each month, the difference between owner cash costs and rent adjusts that portfolio. Home value changes monthly; rent changes annually. At the horizon, deduct selling costs and outstanding mortgage from the home value, then compare net equity with the renter portfolio.

A worked example

If net home-sale equity is $100,000 and the renter comparison portfolio is $80,000, the modeled buying advantage is $20,000.

Reading your result

Use the main result together with its units and supporting figures. Display values are rounded; calculations keep their underlying precision. A change in inputs or assumptions can change the answer. Compare the step-by-step working with your intended use before relying on an estimate.

Frequently asked questions

What does a negative result mean?

The renter portfolio exceeds the owner’s net sale equity under these assumptions.

Are tax deductions included?

No. No tax benefits, PMI or location-specific rules are assumed.

Sources & methodology

This calculator uses the mathematical identity and assumptions stated above. No current rates, prices, or external data are loaded. Conversion tools use international unit definitions.

Formula review: October 24, 2026. Read our methodology.