Tulnest

Rent vs Buy Calculator

Compare the true long-term cost of renting vs buying a home, including down payment, mortgage, tax, maintenance, appreciation, and the renter's investment opportunity cost.

Buying
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Renting
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Common
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Over 10 years
Rent is cheaper by 62,979
Buying never breaks even within this time horizon.
Net cost — Buy
213,567
Net cost — Rent
150,588
Final home value
537,567
Final renter portfolio
244,058

Net cost over time

Both lines are net of equity / portfolio value at each year — the lower line wins.

The classic rent vs. buy decision is harder than it looks because the two paths don't cost the same thing month-to-month. Buying has up-front costs (down payment, closing costs), ongoing costs (interest, tax, insurance, maintenance, HOA), an asset that appreciates and accrues equity, and a transaction cost on sale. Renting has lower friction but no equity build-up, and the down payment you'd have spent could have been invested instead.

This calculator simulates both paths month-by-month over your time horizon. It tracks the renter's alternative investment portfolio (down payment + monthly difference, growing at your assumed rate of return) and the buyer's home equity (price growth − selling costs − remaining loan balance). The recommended answer is whichever path leaves you with less net cost at the end.

How to use

  1. Fill in the buying side: home price, down payment, mortgage rate and term, plus the recurring costs (tax, insurance, maintenance, HOA) and one-time costs (closing, selling).
  2. Fill in the renting side: monthly rent and the annual increase you expect.
  3. Set the time horizon (how long you'd stay in the home) and the investment return rate the renter would earn on the cash they didn't spend on a down payment.
  4. Read the headline: which option costs less, by how much, and the year buying breaks even with renting (if it does within your horizon).
  5. The chart shows both paths' net cost (cash out minus equity / portfolio value) over time. The lower line is winning at that point.

Frequently asked questions

Why does renting sometimes win?
Two reasons. First, the down payment a buyer locks up could earn 5–8% per year in an investment portfolio — that's the renter's opportunity cost. Second, on shorter time horizons, transaction costs (closing fees buying, agent fees selling) eat too much of the equity you've built up.
What time horizon should I use?
How long you realistically plan to stay in the home. Under 3–5 years, renting almost always wins because you don't recoup the closing costs. Over 7–10 years, buying usually wins if home prices keep up with rent inflation. Over 15+ years, buying is usually a clear win in most markets.
Why isn't the result "Buy" just total mortgage cost vs total rent?
Because that's not a fair comparison. Buying gives you an asset (the home) at the end; renting gives you whatever the down payment grew to in an alternative investment. The tool nets both: total cash out minus the value of what you're left with.

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