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Rent vs. Buy Worksheet

This isn't a coin flip. The right answer depends heavily on how long you stay, how your home appreciates, what you'd otherwise do with your down payment, and ongoing costs most calculators skip. This worksheet shows the full picture and an approximate break-even year, not a simplistic verdict.

1Renting

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%
$

2Buying: Purchase & Financing

$
$
Below 20% of the home price, we'll estimate private mortgage insurance (PMI) until you reach 20% equity
%
%
Of home price; typically 2-5%
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Of sale price; realtor commissions and fees, typically 6-8%

3Buying: Ongoing Costs

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Annual, as a % of home value; check your local rate
$
$
$
Many owners budget 1-2% of home value per year

4Assumptions That Drive the Result

These matter more than almost anything else in this worksheet. Small changes here can flip the answer, that's exactly why we show a sensitivity analysis below.

%
%
What your down payment and closing costs could earn if invested instead
%
A simplified estimate only. Most homeowners take the standard deduction instead of itemizing, and this doesn't account for the SALT deduction cap. Check with a tax professional.

This tool provides general estimates for educational purposes only and isn't personalized financial, tax, or investment advice. Real outcomes depend heavily on assumptions you can't know in advance. Read our full disclaimer →

Your Comparison

Enter your rent and home details above to see your comparison.

Monthly Cash-Flow Comparison

What leaves your account each month, today, under each path.

Cost Over Time

Total housing payments made, plus each path's net financial position (home equity net of selling costs, or invested portfolio value) at each milestone.

Total Buying Payments

The buyer's cumulative out-of-pocket cost from move-in to this point: mortgage principal & interest, property tax, homeowners insurance, HOA dues, maintenance, and PMI if it applies, minus any tax benefit. Doesn't include the down payment or closing costs.

Buyer Net Position

A snapshot, not a running total: what the buyer would walk away with if they sold on that date. The home's estimated value at that point, minus selling costs, minus whatever is still owed on the mortgage.

Total Rent Paid

The renter's cumulative out-of-pocket cost from day one to this point: rent plus renters insurance.

Renter Portfolio

Also a snapshot: the value of the renter's invested savings on that date. It starts with what the buyer spent upfront (down payment plus closing costs), then grows with investment returns, plus whatever buying would have cost that month minus what renting actually cost, invested along the way.

Sensitivity Analysis

The break-even year is only as good as the assumptions behind it. Here's how it shifts if appreciation, investment returns, or maintenance costs come in differently than expected.

Nonfinancial Questions Worth Asking

  • How long do you realistically expect to stay in this home or this area, not just how long you plan to?
  • How much do you value the flexibility to move quickly for a job, relationship, or life change?
  • Are you ready to handle maintenance and repairs yourself, both the cost and the responsibility?
  • How stable is your income and job situation over the next several years?
  • Would a market downturn or a job loss put real strain on this decision?
  • Does owning in this specific location fit your life plans, or are you buying because it feels like the "next step"?