Compare long-term renting and buying costs, homeowner equity, and investing the down payment.
USD inputs · transparent calculation assumptions
Instant updates as inputs change
Data is calculated in this browser only
USD inputs · transparent calculation assumptions
Renting minus buying net cost$49,508.22
Buying net cost
$175,313.31
Renting net cost
$224,821.53
Home equity at selected year
$266,282.95
First buying break-even year (up to 50 years)
1 years
Mortgage payment before payoff
$2,022.62
Calculation notes
Understand the Rent vs buy calculator
Buying net cost = down payment + cumulative ownership spending − ending home equity. Renting net cost = cumulative rent − investment gains on the saved down payment. Compare at each year. The calculation runs locally and keeps cash-flow timing consistent with the stated assumptions.
Formula and logic
How are long-term net costs compared when renting versus buying?
Buying net cost = down payment + cumulative ownership spending − ending home equity. Renting net cost = cumulative rent − investment gains on the saved down payment. Compare at each year.
Worked example
What investment opportunity cost does an $80,000 down payment have?
On a $400,000 home with 20% down, $80,000 becomes equity at purchase. The renting scenario keeps that $80,000 invested; at 5% annual return it earns $4,000 in the first year.
How to read the result
What does a positive rent-minus-buy cost difference mean?
A positive renting-minus-buying difference means buying is cheaper under these assumptions.
Negative net ownership cost can reflect appreciation, not spendable income.
Limits and assumptions
Are closing costs and ongoing savings invested in this rent vs buy model?
Excludes PMI, purchase/sale closing costs and tax benefits. Only the down payment is invested in the renting case; ongoing cost differences are not reinvested. The first break-even year is not a guarantee that buying stays cheaper.