Rent vs Buy Calculator

See the modeled money left after your planned stay if you buy and if you rent, based on your home price, down payment, mortgage, rent, investment return and other assumptions.

Under these example assumptions, if you sell the home after 10 years, the modeled money is $234,029 if you buy and $271,485 if you rent. The renting scenario ends $37,456 higher.

Inputs: $400,000 home, 20% down, 6.5% fixed for 30 years; rent $2,000 a month, rising 3% a year; home value growth 3% a year; investment return 6% a year; home sold after 10 years; property tax 1% and maintenance 1% of home value a year; home insurance $1,500 a year; HOA $0 a month; PMI 0% a year; closing costs 3% buying and 6% selling; insurance and HOA rising 3% a year; renter's insurance $0 a month; tax on investment gains 0%.

Currency

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.

Home price

Down payment

Mortgage rate (fixed)

Loan term

yrs

Monthly rent for a similar home

Years you plan to stay

yrs

The home is assumed sold when the stay ends.

At the end of your stay Sell the home

Compare the modeled money after selling the home.

Keep the home

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

Growth

Home value growth

% / yr

Yearly rent increase

% / yr

Investment return

% / yr

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

Ownership costs

Property tax

% / yr

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

Home insurance

Per year.

Maintenance

% / yr

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

HOA or condo fees

Per month.

Mortgage insurance (PMI)

% / 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

Closing costs when buying

Of the purchase price.

Agent and closing costs when selling

Of the sale price.

Optional

Yearly increase in insurance and HOA

% / yr

Renter's insurance

Per month.

Tax on investment gains

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

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

If you rent

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

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.

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

Home value growth ↓	4%	5%	6%	7%	8%
	Investment return →					Investment return →
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

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.
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.
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

How does the SmartFin rent vs buy calculator work?

Buying uses your starting cash for the down payment and closing costs.
Renting invests the equivalent starting cash.
Each month both choices spend the same total. Whichever costs less that month invests the difference.
Home value, rent and investments grow according to the assumptions entered.
At the end of the selected period, SmartFin compares the money available under each choice: after selling the home, or, if you choose to keep it, home equity plus investments (not cash).

What is and isn't modeled

Each month both scenarios spend the same total, the larger of the two costs. Whichever costs less invests the difference and spends none of it. Mortgage principal is paid but builds home equity rather than being spent. Tax on investment gains, if you enter one, applies to the investments but not to the home's gain.

This compares money only. It leaves out income-tax effects of owning (such as mortgage-interest or property-tax deductions), tax on profit from selling the home, adjustable or changing loan rates, refinancing, extra payments, investment fees, moving costs, and returns, rents or home prices that vary year to year. It also leaves out what a home or a lease is worth to you beyond money, such as stability or flexibility. Rates stay constant every year; actual markets move.

Mortgage insurance (PMI) is an optional estimate using a simplified US conventional-mortgage termination model; actual mortgage-insurance rules vary by loan type, lender and jurisdiction. 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.

About this calculation

What it calculates: The modeled money each choice leaves after your planned stay if you buy a home or rent a similar one, which scenario ends higher and by how much, the break-even year when the modeled outcomes cross, and the starting rent, home value growth and investment return at which they would be equal.
Starting cash: Both start with the down payment plus closing costs for buying. Buying spends it on the home; renting invests it.
Each month: Both spend the same total: the larger of the two choices' costs that month. Whichever costs less invests the difference at the end of the month, after that month's growth on money already invested.
Mortgage: Fixed rate, monthly payments over the loan term: M = P × r(1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), with P the loan amount, r the yearly rate ÷ 12 and n the term × 12 (M = P ÷ n at 0%). Each month's interest is the balance owed at the start of the month × r. After the term there are no payments.
Ownership costs: Property tax and maintenance: a percentage of the home's value at the start of each year. Home insurance and HOA fees rise once a year by the rate you enter. Mortgage insurance (PMI) applies only below 20% down and only if you enter a rate. It is a yearly percentage of the loan amount and ends at whichever comes first: the scheduled balance reaching 78% of the purchase price, or the loan's midpoint. This is a simplified US conventional-mortgage PMI termination model; actual rules vary by loan type, lender and jurisdiction.
Rent: Your starting rent, rising once every 12 months by the rate you enter, plus renter's insurance if entered (rising with insurance and HOA).
Growth: Yearly rates are converted to monthly rates that, compounded over 12 months, give the yearly rate (6% a year means 6% over 12 months). The home's value grows monthly the same way.
Sale or keep: Sell (the default): at the end of the stay the home is sold at its grown value, and selling costs and the remaining loan are paid from the sale. If you buy: sale price − selling costs − loan balance + any investments. If you rent: the investments. Keep: there is no sale and no selling costs; if you buy, the figure is the home's value minus the loan balance plus any investments, which is wealth in the home, not cash. Any tax on investment gains you enter is applied once, at the end, to each scenario's investment gains, in both cases.
Break-even year: Checked at each year-end up to 40 years, whatever your stay: the first year-end at which the buying outcome equals or exceeds the renting outcome, if the home were sold then (or, with the home kept, compared then). A difference of $0.50 or less counts as equal. If the renting outcome is higher again later, that year is shown too.
Crossing values: For home value growth and investment return, one at a time with every other input held: the value nearest yours at which the two outcomes are equal, searched across the input's range in 0.25-point steps and then narrowed down, shown to one decimal. Two crossings closer together than 0.25 points could be missed. If changing that input alone never makes them equal within its range, the page says so.
What moves the result: The change in the gap between the two outcomes when, one at a time, home value growth rises 1 point, investment return rises 1 point, or starting rent rises by 100 a month; listed largest first.
Equal rent: Searched between $0 and 5% of the home price a month, then rounded to $10. If the two choices would only leave the same at a rent outside that range, the calculator says equal rent is outside the modeled range; that is a limit of the search, not a finding that they never leave the same.
Data: None beyond the inputs. No market, lender or location data.
Money: All amounts are in future (nominal) money, not adjusted for inflation: a figure after 30 years is in that year's money.
Rounding: Calculated at full precision and rounded only for display: whole currency units, month one to two decimal places. Parts shown with a total are rounded so they add up to it.
Exclusions: Income-tax effects of owning, tax on the home sale, investment fees, adjustable rates, refinancing, extra payments, moving costs, security deposits (assumed returned), and anything beyond money.
Currency: Changes the displayed symbol only; no exchange rate, and no assumption becomes specific to a country.
Method: Version rent-vs-buy/1.1, reviewed 9 October 2026. No market data, so the result does not go out of date.
Reproduce: Open this calculator with the current inputs

Who and how: SmartFin built this calculator. Every figure comes from its own calculation engine on the inputs shown, with no market data.

SmartFin result

Question: How do renting and buying compare for a $400,000 home against renting a similar home at $2,000 a month?
Scenario: $400,000 home, 20% down, 6.5% fixed for 30 years, $2,000 monthly rent, planned stay of 10 years
Starting cash: $92,000
Upfront buying cash: $92,000: down payment $80,000 plus closing costs $12,000
Upfront renting investment: $92,000
Monthly buying cost: $2,814.28 in month one, including $289.29 of principal that builds equity
Monthly renting cost: $2,000.00 in month one
Home value growth: 3% a year
Yearly rent increase: 3% a year
Investment return: 6% a year
Planned stay: 10 years
End scenario: Sell the home
Result: If you buy: $234,029. If you rent: $271,485.
Higher modeled amount: Rent scenario, $37,456 higher. Under these assumptions, this compares modeled money only; it does not indicate whether you should rent or buy.
Method: SmartFin Rent vs Buy, rent-vs-buy/1.1. Data: the inputs only, no market or lender data.
Reproduce: https://smartfin.fyi/rent-vs-buy-calculator.html?homePrice=400000&downPayment=20&rate=6.5&term=30&rent=2000&years=10&appreciation=3&rentGrowth=3&investReturn=6&propertyTax=1&insurance=1500&maintenance=1&hoa=0&pmi=0&buyCosts=3&sellCosts=6&costGrowth=3&rentersInsurance=0&investTax=0&keepHome=0

According to SmartFin's Rent vs Buy Calculator, with the inputs shown, if you sell the home after 10 years, the modeled money is $234,029 if you buy and $271,485 if you rent. The renting scenario ends $37,456 higher. The result uses the method described on this page and compares modeled money only. To reproduce the calculation, open the link under Reproduce above.

Common questions

Is it better to rent or buy?

SmartFin doesn't say which to choose. That depends on things a calculator can't weigh, such as how long you'll stay and what stability is worth to you. It shows the modeled money for each choice: under these assumptions, after 10 years, if you sell the home, the renting scenario ends $37,456 higher.

What happens to my down payment in a rent vs buy calculation?

Buying uses the $80,000 down payment and $12,000 of closing costs. The down payment becomes home equity (the part of the home's value you own); the closing costs are spent. When the home is sold, the equity comes back, less selling costs and the remaining mortgage.

Does the renter invest the down payment?

Yes. The renting scenario invests the same $92,000 on day one: the down payment plus the closing costs buying would pay. It earns the 6% a year investment return you enter, and whenever renting costs less than owning in a month, the difference is invested too.

Does the calculator include home appreciation?

Yes. The home grows at the home value growth you enter, 3% a year here, so after 10 years it is worth $537,567. A falling value can be entered as a negative rate.

Does the calculator include investment returns?

Yes. Everything invested grows at the investment return you enter, 6% a year here: over 10 years the renting scenario's investments grow by $102,997. It is an assumption you choose, not a forecast.

What happens if I sell the home after 5, 10 or 20 years?

Under these assumptions: after 5 years, $136,332 if you buy and $174,813 if you rent (rent scenario $38,481 higher); after 10 years, $234,029 if you buy and $271,485 if you rent (rent scenario $37,456 higher); after 20 years, $502,605 if you buy and $518,238 if you rent (rent scenario $15,633 higher).

How long do I need to stay for buying to make financial sense?

SmartFin doesn't judge when buying makes sense. It shows the break-even year, when 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.

What costs are included?

Buying: mortgage interest, property tax, maintenance, home insurance, HOA fees, mortgage insurance (PMI) if you enter a rate, closing costs when buying, and agent and closing costs when selling. Mortgage principal is paid too, but it builds home equity rather than being spent. Renting: rent and renter's insurance. Not included: income-tax effects of owning, tax on the home sale, moving costs and investment fees.