Last reviewed August 28, 2026

Rent vs Buy Calculator: Formula, Scenarios & Interpretation

Compare projected renting and buying cash costs, home equity and opportunity assumptions over a selected holding period.

What the calculation measures

Rent grows by the selected annual rate. Buying includes down payment, mortgage payments and ongoing owner costs, then subtracts estimated net sale proceeds.

How to interpret the result

The result is most useful when you run multiple appreciation, rent-growth and holding-period scenarios.

Run scenarios instead of one answer

Change the most uncertain input and compare outcomes. A calculator is most useful when it shows sensitivity, not when one estimate is treated as a guarantee.

Limits and assumptions

Tax effects, investment opportunity cost, major repairs and exact transaction fees are simplified.

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