// REAL ESTATE

Rent vs Buy Calculator

The honest numbers behind one of the biggest financial decisions you will ever make. No sugarcoating.

RENTING

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BUYING

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ASSUMPTIONS

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Cheaper Option
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You Save
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Net Cost of Buying
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Net Cost of Renting

    Frequently Asked Questions

    How does this calculator decide?
    It adds up everything each option costs over the years you stay. For buying: down payment, closing costs (~3%), mortgage payments, property tax, maintenance and insurance, minus your equity when you sell (after ~6% selling costs). For renting: all rent paid, minus what you would earn by investing the cash you did not spend on buying.
    Is renting really throwing money away?
    No. Mortgage interest, property tax, maintenance and insurance are also money you never get back. Renting can win, especially if you move within a few years or the renter actually invests the difference.
    What investment return should I use?
    Historically, a diversified stock index fund has returned roughly 7% per year after inflation over long periods, but returns vary a lot year to year. Use a lower number if you would keep the money in savings instead.

    For educational purposes only — not financial, tax or legal advice. Results are estimates; check with a qualified professional before making major decisions.