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Rent vs. Buy Calculator
Compare the present-value costs of renting and buying over a chosen horizon, including sale proceeds, mortgage balance, and the opportunity cost of capital.
- Buying savings versus renting
- 13,507.58
- Present-value buying cost
- 148,225.85
- Present-value renting cost
- 161,733.42
- Net sale proceeds after loan payoff
- 146,567.67
How the calculation works
Future costs and proceeds are discounted to today. Buying cost = down payment + closing costs + payments and upkeep − net sale proceeds.
Inputs
- Home price
- Down payment
- Mortgage rate, %
- Mortgage term, months
- Comparison horizon, months
- Purchase closing costs
- Selling costs, %
- Monthly taxes, insurance and upkeep
- Monthly rent
- Annual rent growth, %
- Annual home appreciation, %
- Annual discount rate, %
Calculation details
The model assumes the home is sold at the end of the horizon. Sale taxes, tax deductions, growing upkeep costs, and moving expenses are excluded.
The discount rate represents an alternative after-tax return. Results are sensitive to home appreciation and rent growth.
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Updated: 2026-10-02