Compare true 5-10 year cost of renting versus buying
For prospective homebuyers comparing wealth over 5-10 years: rent option versus buy option including opportunity cost, taxes, and transaction costs.
Rent vs Buy Calculator
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Create Free AccountWhat it does
The Rent-vs-Buy Calculator compares the true cost of renting versus buying over a 5-10 year period by accounting for rent escalation, maintenance costs, property taxes, insurance, mortgage interest, and the opportunity cost of down payment investment. See the breakeven point where homeownership becomes cheaper than renting.
Rent-vs-buy math is surprisingly complex because homeownership costs more initially but wins long-term through equity buildup and fixed housing costs. This calculator removes emotion from the decision by showing the intersection where buying becomes financially superior to renting.
Who it's for
- Renters deciding whether to buy primary residences or continue renting
- Financial advisors counseling clients on buy versus rent life decisions
- Real estate agents justifying homeownership to hesitant renters
- Mortgage brokers presenting the long-term cost advantage of homeownership
How it works
Enter rent or buy parameters
If rent: monthly rent and growth rate. If buy: price, down payment, financing terms.
Model appreciation and alternative investment
Home appreciation rate and expected return if you invested down payment elsewhere.
Calculate 5 and 10-year outcomes
Compare net wealth: buy scenario minus rent scenario.
Why it matters
Model complete 5-10 year financial outcome of both paths
Factor in property appreciation, equity build, and tax benefits
Account for selling costs and capital gains taxes
Identify break-even timeline for buying in your market
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What every calculator includes
67 Calculators
Every investment strategy — rental, flip, BRRRR, mortgage, commercial, wealth building.
Scenario Projections
Conservative, base, and optimistic 1/2/5/10-year return modeling.
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Claude-powered analysis — strengths, risks, and actionable recommendations.
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Print-Ready Reports
Professional PDF reports to share with agents, lenders, and partners.
Address Auto-Fill
Enter a property address to pre-fill value, rent, and tax data automatically.
Live FRED Rates
Mortgage rate fields pre-populate with Federal Reserve interest rate data.
Investment-Grade Math
Every formula audited against professional underwriting standards.
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Frequently asked questions
When does buying break even with renting?
Typically 5–7 years. Earlier in appreciating markets; later in flat markets. Include closing costs and selling costs.
Should I assume property appreciates or stays flat?
Use realistic local assumption: 2–4% historically. Assume rent grows 2–3% annually (inflation-matched).
Do I include home maintenance in renting scenario?
No — renters don't pay maintenance. Renters pay higher rent to cover landlord's maintenance plus profit. Build it into rent assumption.
Is this calculation the same as financial independence?
No — this is 5–10 year snapshot. Longer horizon (20–30 years) favors buying more dramatically due to compounding.
Is this calculator free to use?
Yes — create a free Investor Starter account to run 1 calculator per day. No credit card required. Upgrade to Core ($49/mo) for unlimited access to all 67 calculators.
How accurate are the results?
Results are only as accurate as your inputs. The formulas use industry-standard real estate investment math. Always verify with a licensed professional before committing capital.
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