Calculators / Home & loans

Rent or buy, honestly

Most versions rig the answer by ignoring what your down payment could earn invested - or the 6% you will pay to sell. This one counts everything, both directions. Nothing you type leaves this page.

$

Enter $10,000 to $20,000,000.

%

Below 20% adds PMI automatically (0.8%/yr until 20% equity).

%
%/yr
%/yr

The forgotten line: roofs, water heaters, insurance - 1-2% of value yearly is typical.

%/yr
$
%/yr
%/yr

What the down payment + closing costs + any monthly savings earn if you rent instead.

yrs

After your stay, buying leaves you

Owner net worth

Renter net worth

Crossover year

Net worth over time - owner vs. renter, everything counted

Year-by-year net worth, both paths

What "everything counted" means

The owner's side: mortgage payment, property tax, maintenance and insurance, PMI while equity is under 20%, and 3% closing costs going in - against growing equity and appreciation, minus 6% selling costs whenever you would sell. The renter's side: rent, growing yearly - while the down payment, closing costs, and every month the renter's total costs run cheaper than the owner's get invested at your return.

owner net worth = home value x (1 - 6%) - loan balance ; renter net worth = invested portfolio

Why most calculators flatter buying

Three omissions do it: the down payment's investment earnings (on $85,000 at 7%, roughly $6,000 the renter earns every year), maintenance (1-2% of value, invisible until the roof fails), and the 6% exit fee. Include them and short stays usually favor renting - the crossover year above is where that flips for your numbers.

Notes

Mortgage-interest deductions are ignored - with today's standard deduction most owners do not itemize (the tax tool checks). Rent stability and the joy of painting a wall are real but unpriceable - this is the money half of the decision.