Rent vs Buy Calculator
Compare the long-term financial impact of renting vs buying. See net worth projections, a Monte Carlo scenario range (not a single path), and disclosed assumptions.
Last updated October 18, 2026
How our math works
- 30-year fixed-rate loan at 6.75% interest
- 3%/yr home appreciation, 3%/yr rent growth, and 7%/yr investment return — projections, not guarantees
- Rates shown are interest rates used for estimation only — not APRs and not offers. APR reflects fees and other loan costs and may differ from the interest rate shown.
My scenario
Enter income, debts, price, and rate once. Every calculator pre-fills.
Location
Optional — refines the state estimate
Buying Scenario
$
$
%
%
Expected annual home value increase
Ownership Costs
%
Annual, as % of home value
$
%
Annual upkeep, typically ~1% of home value
%
Applies when down payment is under 20%; drops at 78% LTV
$
Upfront cash at purchase — counted as opportunity cost
%
Agent commissions + fees when you sell, typically 6–8%
Renting Scenario
$
%
Expected annual rent increase
%
Return on invested savings
Analysis Period
After 10 Years (base path)
Renting Wins
By $108,468 in net worth · buying ahead in 21.8% of scenarios
$369,861
$261,393
Never
Renting wins$108,468
Rent aheadNet Worth Over Time
Comparing wealth accumulation: renting + investing vs buying
After 120 months, Rent + Invest totals $369,861 and Buy Home totals $261,393.
Scenario range
Buy − rent net worth across sampled paths (positive means buying is ahead)
At year 10: P10–P90 (buy − rent) −$337,128 to $75,021; Median (P50) −$106,184.
21.8%
of 400 scenarios−$337,128
Buy − rent, 10th pct−$106,184
Median scenario$75,021
Buy − rent, 90th pctMonthly Cost Comparison
What you pay each month in year 1
$2,200
per month (year 1)
In year 10: ~$2,871/mo
$3,310
all-in per month (year 1)
Principal & Interest
$2,335
Property Tax
$450
Insurance
$150
Maintenance
$375
P&I fixed for 30 years; tax & maintenance grow with home value
Named paths
Appreciation, rent inflation, and investment return move together — not appreciation alone
Optimistic (buying-friendly)
5% appreciation · 4% rent inflation · 5.5% return
Break-even: Year 6
Buying ahead
$58,410Base (your inputs)
3% appreciation · 3% rent inflation · 7% return
Break-even: Never
Renting ahead
$108,468Pessimistic (renting-friendly)
1% appreciation · 2% rent inflation · 8.5% return
Break-even: Never
Renting ahead
$263,009Key Insights
What these numbers mean for you
Base Path
Base path: Renting wins. After 10 years, you're ahead by $108,468 by renting
Insight
Scenario range (not a single path): optimistic (5.0% appreciation, 4.0% rent inflation, 5.5% return) vs pessimistic (1.0% / 2.0% / 8.5%). Horizon difference P10–P90: −$337,128 to $75,021 (buy − rent)
Insight
Monte Carlo (400 seeded draws of appreciation, rent inflation, and investment return): buying ends ahead in 21.8% of scenarios
Insight
Buying does not break even within 10 years in 78.3% of sampled scenarios
Insight
Buy-side net worth is net of 6% selling costs (≈$36,286 at year 10), and the rent scenario invests your $103,500 cash to close at 7%
Insight
Over 10 years, you'll pay $302,647 in rent with no equity to show for it
Insight
The math assumes whichever side pays less each month invests the difference. If you don't invest the savings, the cheaper option loses its edge.
The Bottom Line
On the base path, over 10 years renting at $2,200/month and investing the difference builds $108,468 more wealth than buying. Buying ends ahead in 21.8% of 400 sampled scenarios (P10–P90 difference −$337,128 to $75,021).
Here are the exact formulas behind your numbers. No black boxes — just math.
Buy vs Rent Comparison
Monthly Ownership Cost
Monthly Rent
Invest the Difference
Rent Net Worth
Buy Net Worth
Break-Even Year
Scenario range (not a single path)
Named paths
Monte Carlo draws
P10–P90 difference
Share of paths where buying wins
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Frequently Asked Questions
It depends on how long you stay, local price-to-rent ratios, your rate, and what your down payment could earn invested. Buying usually wins over longer horizons because equity builds and rent keeps inflating; renting often wins for stays under about 5 years once you count closing costs and selling fees.
Owners pay property taxes, homeowners insurance, maintenance (commonly estimated at 1% of home value per year), possible HOA dues, and roughly 6-8% in transaction costs when selling. This calculator includes all of these, not just the mortgage payment.
The break-even point is the year when the total cost of owning (net of equity built and appreciation) drops below the total cost of renting (including what your down payment could have earned invested). This calculator charts the base path year by year and a Monte Carlo range so you can see how often that break-even still holds when appreciation, rent inflation, and investment returns vary together.
Appreciation, rent inflation, and investment returns are uncertain. A single best/base/worst that only moves home appreciation understates that. We run named joint paths plus 400 seeded Monte Carlo draws around your inputs and report P10–P90 of the wealth gap and the share of scenarios where buying ends ahead. Assumptions are listed on the calculator and on the methodology page.