About Rent vs. Buy Financial Decision Calculator
Comprehensive 30-year financial modeling tool comparing buying a home versus renting and investing the difference in the stock market. Factors in home appreciation, mortgage interest, property taxes, maintenance (1% rule), selling costs (6%), rent inflation, and opportunity cost of capital.
Key Capabilities & Features
- Multi-decade net worth tracking: Year-by-year comparison of homeowner equity vs renter investment portfolio
- Automated breakeven year calculation identifying the exact crossover point where buying becomes more profitable
- Comprehensive expense modeling: Mortgage P&I, property taxes, homeowners insurance, maintenance, and 6% sales fee
- Renter opportunity cost simulation: Down payment savings and monthly differential compounded in index funds
- Customizable macroeconomic inputs: Property appreciation, annual rent inflation, and stock return rates
How to Use Rent vs. Buy Financial Decision Calculator
Input Home Price & Comparable Rent
Enter the target home purchase price and current monthly rent for an equivalent residence.
Set Time Horizon
Specify how many years you anticipate staying in the property before moving.
Adjust Appreciation & Growth Rates
Configure expected real estate appreciation, rent inflation, and index fund return rates.
Review Breakeven Year
Inspect the net wealth comparison table and identify your financial breakeven horizon.
Privacy & In-Browser Execution Guarantee
100% Client-Side. Financial projections run locally without transmitting personal financial goals.
Frequently Asked Questions
Why does renting sometimes outperform buying in the short term?
Due to upfront transaction costs (closing costs of ~3% on purchase and ~6% agent fees on sale) plus initial front-loaded mortgage interest, buying typically requires 4 to 7 years to beat renting.
What is the 1% maintenance rule in real estate?
The 1% rule suggests budgeting approximately 1% of the total property value annually for ongoing repairs, roofing, HVAC, and regular structural maintenance.