Buy vs. Rent Calculator
Compare the long-term financial impact of buying a home versus renting and investing your money elsewhere.
The Home You'd Buy
Buying Costs
Your Rent
Investment Assumptions
The renter invests the down payment + closing costs upfront, then invests any monthly savings vs. buying. The historical S&P 500 nominal return is ~10% annually; ~7% is a common conservative estimate.
Renting may be better
Renting and investing may generate approximately $15,427 more net worth after 10 years.
After 10 years · Based on your assumptions
Break-Even Analysis
Renting and investing remains financially favorable throughout the selected 10-year period based on these assumptions.
Initial Monthly Cost
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Create Free AccountProjected Net Worth Over Time
How wealth builds under each path
Buying includes home equity after selling costs. Renting includes investment portfolio growth.
Buying Outcome
After 10 years
$282,325
Renting + Investing Outcome
After 10 years
$297,752
What the Numbers Mean
Your home is projected to appreciate by approximately $184,769 over 10 years — from $450,000 to $634,769.
Renting saves roughly $786/month initially versus buying. That gap narrows as rent grows at 3.0% per year while your mortgage payment stays fixed.
Most buying wealth comes from appreciation and principal reduction. Most renting wealth comes from investment compounding. Both paths can build substantial wealth over time.
Selling costs of 7% ($44,434) and closing costs of $13,500 are significant transaction costs that reduce buying's advantage — especially in shorter time horizons.
Financial Considerations Beyond the Math
Numbers only tell part of the story. These factors matter too.
Flexibility & Mobility
Renting gives you the freedom to move for a job, relationship, or lifestyle change without the cost and complexity of selling a home.
Stability & Roots
Owning a home lets you customize your space, build community, and provides stability — especially important for families with children.
Market Uncertainty
Home values and investment returns don't move in straight lines. The assumed rates in any model are estimates — actual outcomes can vary significantly.
Maintenance Reality
Homeownership comes with unexpected costs — a new roof, HVAC system, or plumbing emergency can cost thousands. Renters shift this risk to the landlord.
Forced Savings
Every mortgage payment builds equity. For people who struggle to invest consistently, buying can act as a forced savings mechanism.
Tax Considerations
Mortgage interest and property tax deductions can benefit homeowners who itemize. Consult a tax professional for your specific situation.
Explore Related Resources
Mortgage & Ownership Cost Calculator
See your true monthly cost including mortgage, taxes, insurance, HOA, PMI, and maintenance reserve.
Homeownership Goal Planner
Turn your dream home into a savings plan. Track your timeline, readiness score, milestones, and personalized action plan.
Buy vs Rent Guide
Understanding the True Cost of Homeownership
Building Home Equity
Educational estimate only. BuyerPath is not a lender, financial advisor, or licensed financial professional — actual costs may vary. See our Disclaimer for details.