Buy vs. rent calculator
Buy vs. Rent Calculator
Use the buy-vs-rent calculator to compare a simplified ownership path with a rental path over the same holding period.
Example Use
Example: a home that appreciates 3% annually may still be expensive over a short holding period if taxes, insurance, maintenance, and selling costs are high.
What it estimates
The calculator estimates future home value, total rent paid, ownership carrying costs, selling costs, and a simplified difference between buying and renting.
It is best used for comparing assumptions. Actual results depend on local appreciation, repairs, taxes, insurance, transaction costs, financing, and how long you stay.
How to use the result
Change the holding period first. Short timelines tend to make transaction costs more important, while longer timelines give principal paydown and appreciation more time to matter.
Then test appreciation and rent growth separately. A small assumption change can move the answer, which is why local context matters.
FAQs
Does appreciation guarantee buying wins?
No. Appreciation is uncertain and ownership has taxes, insurance, maintenance, and selling costs.
Does rent growth guarantee buying wins?
No. Rent growth matters, but so do interest rates, repairs, and the holding period.
Where should appreciation assumptions come from?
Use local history and current market context, not only national averages.
Run the numbers