Compare the long-term financial costs of renting versus buying a home.
Comparison Inputs
Growth Assumptions
Return if investing d-payment
The Verdict
Financial Recommendation
BUYING IS CHEAPER
You save approx $31,292 over 10 years.
Cumulative Sunk Costs (Lower is Better)
*Sunk costs represent money paid that provides no equity or return (Rent, Interest, Tax, Maint).
About this calculator
Overview
The Rent vs. Buy decision is one of the most significant financial choices most people make. This calculator compares the 'sunk costs'—money you pay that creates no wealth—for both scenarios.
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Pro Tips
The longer you stay in a home, the more 'Buying' becomes the superior financial choice due to equity build-up and appreciation.
If you plan to move within 3-5 years, 'Renting' is often cheaper because you avoid large closing costs (buying and selling).
Include more than just mortgage vs rent; consider property taxes, homeowners insurance, and maintenance (usually 1% of home value/year).
Remember that your down payment has an opportunity cost; it could be earning 5-10% in the stock market instead.
