Should you rent or buy? This calculator compares how much wealth you would have after the years you plan to stay: home equity if you buy, or investments if you rent and invest the money you would have spent on buying.
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What decides rent vs buy
- How long you stay. Buying and selling costs are large, so buying usually needs several years to pay off.
- Price compared with rent. Where homes are expensive relative to rent, renting often wins.
- Mortgage rate and home value growth. Higher rates favour renting; strong price growth favours buying.
With the example numbers (a 300,000 home, 1,500 rent and 7 years), renting comes out ahead by about 20,600. Stay longer, or expect faster price growth, and buying can win.
Frequently asked questions
Is renting really throwing money away?
No. Owners also have costs that build no wealth: mortgage interest, property tax, insurance and repairs. The fair comparison is what each choice leaves you with, which is what this calculator shows.
How much house can I afford?
Use the home affordability calculator to turn your income and debts into a price.