Net worth while renting
Adds the initial capital not used to buy and cash-flow differences invested during the horizon.
Real Estate
Rent vs. buy calculator
Compare renting and investing with buying using a mortgage, upfront costs, appreciation and editable assumptions.
Advanced assumptions
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Annual comparison
The table shows estimated net worth, cash flow and mortgage balance at the end of each year.
- Horizon
- Pending
- Break-even
- Pending
Calculate a scenario to view the annual comparison.
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How to read the result
The calculator does not decide for you; it makes the assumptions that often drive the comparison visible.
Net worth while buying
Starts with the home's estimated value and subtracts the remaining mortgage balance and selling costs.
Break-even point
Marks the first year when buying reaches or exceeds the estimated net worth from renting.
Frequently asked questions
What costs are included when buying a home?
The calculation includes the down payment, purchase costs, mortgage payments, maintenance, property tax, estimated appreciation and selling costs.
How does appreciation affect the result?
Appreciation changes the home's estimated value at the end of the horizon. Higher appreciation improves equity in the buying scenario; negative appreciation reduces it.
What is the alternative return on the down payment and upfront costs?
It is the hypothetical return from investing money not used to buy: the down payment, upfront costs and cash-flow differences when buying costs more than renting.
Why compare net worth instead of only monthly payments?
Buying creates both an asset and debt, while renting may leave capital invested. Comparing net worth captures both sides of the scenario.
What does the net-worth break-even point mean?
It is the first year when the estimated net worth from buying equals or exceeds the estimated net worth from renting.
Does the calculator recommend buying or renting?
No. It presents a scenario with editable assumptions. The actual decision depends on liquidity, location, risk, taxes, loan terms and personal plans.