Buy or Rent Calculator

Use this calculator to check the cost and benefit of buying a house vs. renting.

Buy or Rent a House

This tool helps you evaluate:

  1. One of the biggest financial decisions you'll make - whether to buy a home or continue renting. By comparing the long-term impact of each option, you can see how buying versus renting affects your wealth and net worth over time.

  2. It also lets you model shorter ownership timelines. If you plan to resell the home in a few years, you can assess whether buying still makes financial sense after accounting for transaction costs, appreciation, and ongoing expenses—or whether renting would be the better choice. With these insights, you can make a housing decision that aligns with both your lifestyle and financial goals.

The house I want to buy

Purchase price
Downpayment
Loan amount
Loan term (years)
Mortgage rate
Monthly mortgage payment
Monthly property income such as Airbnb, rent revenue.
Property value future growth   a year
Credit score range
Monthly mortgage insurance (PMI)
One-time extra costs such as closing fee, renovating cost.
Monthly extra costs Extra cost that you don't need to pay when renting, such as HOA, homeowner insurance (the amount over renter insurance), additional utilities, home maintenance.
Property tax of your city
Your highest tax rate (for elective deductions)

If not buying, what is the rent?

Monthly rent & fee
Sublease income
Rent inflation
Investment yield the expected return of investment when you invest extra cash

What if I re-sell it later?

Re-sell the house after years at
Selling cost Normally the commission you need to pay to seller's agent and buyer's agent.

Gain (+) or loss (-) of buyer and renter

Higher(+)/lower(-)
than renter's

The wealth of the buyer who won't re-sell
The wealth of the buyer who will re-sell at the end
The wealth of the all-time renter

Accumulated Wealth Over Time

Content created by

AlexCFA, FSA, FRM, MBA

Alex is a seasoned finance professional with over 15 years of experience in investment management and financial technology. He began his career as a financial advisor and later led large-scale budgeting and risk management initiatives at global consulting firms. He also brings extensive experience as both an investment analyst and a software engineer. Alex is a CFA® charterholder, Fellow of the Society of Actuaries (FSA), and Financial Risk Manager (FRM®).

Content published on 2024-05-01. Last reviewed and updated on 2026-01-16.

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