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Mortgage & Home

Rent vs. Buy

Compare the total cost of renting against owning over a holding period.

Your numbers

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Buying costs less

$32,796

Total rent paid$147K
Total ownership outlay$243K
Equity at sale (after 6% costs)$129K
Net cost of owning$114K
Total rent paid
$147,119
Total ownership outlay
$243,257
Equity at sale (after 6% costs)
$128,934
Net cost of owning
$114,323

Assumes a 30-year mortgage and 6% selling costs. Does not model tax deductions or investment returns on the down payment.

In plain English

Rent vs. Buy explained simply

Folks ask us this over coffee every spring. Renting is simpler, buying builds ownership. This compares what each choice really costs you over the years you plan to stay.

For example

Staying only 3 years often favors renting, because buying costs a lot up front. Staying 10 years usually favors buying.

Words on this page

Want a second set of eyes on these numbers?

These calculators are estimates for planning purposes and don't account for every detail of your situation. Bring your results to us and we'll pressure-test them against your actual tax picture.

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