Currency changes the displayed currency symbol only. Mortgage-insurance and other jurisdiction-specific assumptions are simplified models and may not apply to every country or loan type.

$
%

%
yrs
$
yrs

The home is assumed sold when the stay ends.

At the end of your stay

Compare the modeled money after selling the home.

Counts the value of the home you still own. This is not cash in your bank account.

Growth

% / yr
% / yr
% / yr

An assumption you enter, not a forecast. Used by whichever choice has money left over each month.

Ownership costs
% / yr

Of the home's value at the start of each year.

$

Per year.

% / yr

Of the home's value at the start of each year.

$

Per month.

% / yr

Optional estimate. This calculator uses a simplified US conventional-mortgage PMI termination model. Actual mortgage-insurance rules vary by loan type, lender and jurisdiction. Charged as a yearly percentage of the loan, below 20% down, only if you enter a rate.

Buying and selling
%

Of the purchase price.

%

Of the sale price.

Optional
% / yr
$

Per month.

%

Applied once, at the end, to each choice's investment gains. At 0% the gains are untaxed.

How do renting and buying compare?

After 10 years, if you sell the home (example inputs)

If you buy
$234,029
money after selling the home
If you rent
$271,485
money in your investments
The renting scenario ends $37,456 higher.

Under these assumptions, this compares modeled money only; it does not indicate whether you should rent or buy. Amounts are in future money, not adjusted for inflation. Rates are held constant. Income-tax effects of owning and tax on the home sale are not included. Tax on investment gains used: 0%.

Your starting money

Starting cash: $92,000

If you buy

Down payment (becomes home equity)
$80,000
Closing costs (spent)
$12,000
Invested upfront
$0

If you rent

Down payment
$0
Closing costs
$0
Invested upfront
$92,000

Both choices start with the same $92,000. Buying puts that money into the home. Renting invests it instead.

Your monthly cost

If you buy

Mortgage payment
$2,022.62
Property tax
$333.33
Maintenance
$333.33
Home insurance
$125.00
Total buying cost
$2,814.28 / month

$289.29 of the mortgage payment is principal. It pays down the loan and builds your home equity (the part of the home's value you own: its value minus the loan), so you keep it, unlike interest. The total above includes it.

If you rent

Rent
$2,000.00
Total renting cost
$2,000.00 / month

+ $814.28 invested each month (the difference; striped on the bar)

Renting costs $814.28 less per month. That difference is invested.

These are month-one amounts. Rent rises 3% a year, property tax and maintenance follow the home's value, insurance and HOA fees rise 3% a year, and the mortgage payment stays the same. Each month, whichever choice costs less invests the difference.

What happens to your money

If you buy

  1. Starting cash$92,000
  2. Down payment and closing costs$80,000 + $12,000 go into buying the home
  3. The home$400,000 home, bought with a $320,000 mortgage
  4. Pay the monthly costs$351,621 over 10 years: interest $193,998, principal $48,716 (becomes equity), property tax, insurance and upkeep $108,907
  5. Mortgage gets paid down$320,000 borrowed; $271,284 still owed after 10 years
  6. Home value changes$400,000 → $537,567 after 10 years
  7. Sell the homeSelling costs $32,254; mortgage paid off $271,284
  8. Money after selling$234,029

If you rent

  1. Starting cash$92,000
  2. Invest upfront$92,000 invested on day one
  3. Pay rent$275,133 over 10 years
  4. Invest monthly savings$76,488 invested month by month
  5. Investments grow+$102,997 at 6% a year
  6. Money after 10 years$271,485

The renting scenario ends $37,456 higher.

How the result changes over time

Money after selling the home, for each possible stay length. Your planned stay is marked.

$0$200K$400K$600K$800K$1M151015202530YearsYour planned stay: 10 yearsBreak-even: year 24If you buyIf you rentAfter 1 year: if you buy $70,857, if you rent $107,557. Rent scenario $36,701 higherAfter 2 years: if you buy $86,291, if you rent $123,601. Rent scenario $37,310 higherAfter 3 years: if you buy $102,330, if you rent $140,147. Rent scenario $37,817 higherAfter 4 years: if you buy $119,001, if you rent $157,213. Rent scenario $38,212 higherAfter 5 years: if you buy $136,332, if you rent $174,813. Rent scenario $38,481 higherAfter 6 years: if you buy $154,354, if you rent $192,967. Rent scenario $38,612 higherAfter 7 years: if you buy $173,101, if you rent $211,692. Rent scenario $38,591 higherAfter 8 years: if you buy $192,604, if you rent $231,007. Rent scenario $38,403 higherAfter 9 years: if you buy $212,901, if you rent $250,931. Rent scenario $38,030 higherAfter 10 years: if you buy $234,029, if you rent $271,485. Rent scenario $37,456 higherAfter 11 years: if you buy $256,028, if you rent $292,689. Rent scenario $36,661 higherAfter 12 years: if you buy $278,939, if you rent $314,564. Rent scenario $35,625 higherAfter 13 years: if you buy $302,808, if you rent $337,134. Rent scenario $34,326 higherAfter 14 years: if you buy $327,681, if you rent $360,421. Rent scenario $32,740 higherAfter 15 years: if you buy $353,606, if you rent $384,449. Rent scenario $30,842 higherAfter 16 years: if you buy $380,638, if you rent $409,242. Rent scenario $28,604 higherAfter 17 years: if you buy $408,830, if you rent $434,827. Rent scenario $25,997 higherAfter 18 years: if you buy $438,241, if you rent $461,230. Rent scenario $22,989 higherAfter 19 years: if you buy $469,357, if you rent $488,904. Rent scenario $19,547 higherAfter 20 years: if you buy $502,605, if you rent $518,238. Rent scenario $15,633 higherAfter 21 years: if you buy $538,124, if you rent $549,332. Rent scenario $11,208 higherAfter 22 years: if you buy $576,061, if you rent $582,292. Rent scenario $6,232 higherAfter 23 years: if you buy $616,573, if you rent $617,230. Rent scenario $657 higherAfter 24 years: if you buy $659,827, if you rent $654,264. Buy scenario $5,563 higherAfter 25 years: if you buy $706,001, if you rent $693,520. Buy scenario $12,482 higherAfter 26 years: if you buy $755,284, if you rent $735,131. Buy scenario $20,154 higherAfter 27 years: if you buy $807,878, if you rent $779,239. Buy scenario $28,639 higherAfter 28 years: if you buy $863,995, if you rent $825,993. Buy scenario $38,002 higherAfter 29 years: if you buy $923,864, if you rent $875,552. Buy scenario $48,312 higherAfter 30 years: if you buy $987,726, if you rent $928,086. Buy scenario $59,641 higher
  • At 10 years, the renting scenario is $37,456 higher under these assumptions.
  • At 20 years, the renting scenario is $15,633 higher under these assumptions.
AfterIf you buyIf you rentAmount higher
1 year$70,857$107,557Rent scenario $36,701
2 years$86,291$123,601Rent scenario $37,310
3 years$102,330$140,147Rent scenario $37,817
4 years$119,001$157,213Rent scenario $38,212
5 years$136,332$174,813Rent scenario $38,481
6 years$154,354$192,967Rent scenario $38,612
7 years$173,101$211,692Rent scenario $38,591
8 years$192,604$231,007Rent scenario $38,403
9 years$212,901$250,931Rent scenario $38,030
10 years$234,029$271,485Rent scenario $37,456
11 years$256,028$292,689Rent scenario $36,661
12 years$278,939$314,564Rent scenario $35,625
13 years$302,808$337,134Rent scenario $34,326
14 years$327,681$360,421Rent scenario $32,740
15 years$353,606$384,449Rent scenario $30,842
16 years$380,638$409,242Rent scenario $28,604
17 years$408,830$434,827Rent scenario $25,997
18 years$438,241$461,230Rent scenario $22,989
19 years$469,357$488,904Rent scenario $19,547
20 years$502,605$518,238Rent scenario $15,633
21 years$538,124$549,332Rent scenario $11,208
22 years$576,061$582,292Rent scenario $6,232
23 years$616,573$617,230Rent scenario $657
24 years$659,827$654,264Buy scenario $5,563
25 years$706,001$693,520Buy scenario $12,482
26 years$755,284$735,131Buy scenario $20,154
27 years$807,878$779,239Buy scenario $28,639
28 years$863,995$825,993Buy scenario $38,002
29 years$923,864$875,552Buy scenario $48,312
30 years$987,726$928,086Buy scenario $59,641
31 years$1,055,763$983,771Buy scenario $71,993
32 years$1,128,146$1,042,797Buy scenario $85,349
33 years$1,205,142$1,105,365Buy scenario $99,778
34 years$1,287,038$1,171,687Buy scenario $115,351
35 years$1,374,135$1,241,988Buy scenario $132,147
36 years$1,466,754$1,316,507Buy scenario $150,247
37 years$1,565,235$1,395,498Buy scenario $169,737
38 years$1,669,939$1,479,228Buy scenario $190,712
39 years$1,781,250$1,567,981Buy scenario $213,269
40 years$1,899,572$1,662,060Buy scenario $237,512

Break-even: when do the modeled outcomes cross?

Assuming you sell the home, the break-even year is year 24: the first year-end at which the modeled buying outcome equals or exceeds the renting outcome, under these assumptions. At 23 years: rent scenario $657 higher; at 24 years: buy scenario $5,563 higher.

What changes the modeled outcome?

See how the modeled results change when home value growth and investment returns change.

The modeled outcome changes depending on the assumptions.

Investment return →Investment return →
Home value growth ↓4%5%6%7%8%
5%Buy scenario
+$99.5K		Buy scenario
+$80.1K		Buy scenario
+$59K		Buy scenario
+$36.3K		Buy scenario
+$11.8K
4%Buy scenario
+$48.8K		Buy scenario
+$29.5K		Buy scenario
+$8.6K		Rent scenario
+$13.9K		Rent scenario
+$38.3K
3%Buy scenario
+$2.4K		Rent scenario
+$16.7K		Rent scenario
+$37.5K		Rent scenario
+$59.8K		Rent scenario
+$84K
2%Rent scenario
+$39.9K		Rent scenario
+$58.9K		Rent scenario
+$79.5K		Rent scenario
+$101.7K		Rent scenario
+$125.7K
1%Rent scenario
+$78.5K		Rent scenario
+$97.4K		Rent scenario
+$117.8K		Rent scenario
+$139.9K		Rent scenario
+$163.7K

Each cell: the scenario with the higher modeled amount after 10 years, and by how much. Your inputs are outlined. Tested: home value growth 1% to 5%, investment return 4% to 8%.

What would make the outcomes cross?

  • Home value growth above about 3.8% a year (instead of 3%), holding everything else: the buying scenario would then be higher, under these assumptions.
  • Investment return below about 4.1% a year (instead of 6%), holding everything else: the buying scenario would then be higher, under these assumptions.
  • Starting rent above about $2,200 a month (instead of $2,000), holding everything else: the buying scenario would then be higher, under these assumptions.

What moves the result most

  1. Home value growth. 1 point higher (4% a year) moves the result $46,062 toward the buying scenario. Buying owns the home, so a higher home value adds to its amount; property tax, maintenance and selling costs rise with it and take some back.
  2. Investment return. 1 point higher (7% a year) moves the result $22,383 toward the renting scenario. Returns grow the money each scenario invests: after 10 years the renting scenario has $271,485 invested and the buying scenario $0.
  3. Starting rent. $100 a month more in starting rent moves the result $18,364 toward the buying scenario. Renting costs more each month, so the renting scenario invests less of the difference.

Where your money comes from

If you buy

Money from selling the home (sale price)
$537,567
Investments
$0
Selling costs
−$32,254
Mortgage remaining
−$271,284
Money after selling
$234,029

If you rent

Initial investment
$92,000
Monthly investments
$76,488
Investment growth
$102,997
Investment taxes
$0
Money after 10 years
$271,485

Where the money goes, the chart, the year-by-year table and the method are in the full calculator.

Estimates only, not financial advice. smartfin.fyi →