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Home calculator

Rent vs. Buy Calculator

Compare two housing paths over the same timeline. The estimate brings rent changes, home financing, ownership costs, future sale proceeds, and alternative uses of upfront cash into one adjustable view.

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Your estimate

What the numbers say

Renting leads by$13,518

Estimated net-worth difference after 7 years under these assumptions.

Buying ending net worth$194,738
Renting ending net worth$208,257
Break-even pointNot reached
Scenario summary
MeasureBuyingRenting
Housing cash outflow$380,638$225,377
Investment balance$0$208,257
Ending net worth$194,738$208,257

Preparing detailed analysis…

Estimate only. Actual costs and outcomes vary. Verify important decisions with current quotes and qualified professionals.

How it works

What this estimate calculates

This TrueCost comparison gives both paths equal starting resources. The buying path models amortization, ownership costs, home value, remaining debt, and selling costs; the renting path invests upfront cash not used to buy. Each month, the lower-cost path invests the cash-flow difference. Smooth growth assumptions are scenario inputs, not forecasts.

Assumptions to keep in mind

  • Mortgage rates and entered cost-growth rates remain constant throughout the comparison.
  • Home appreciation and investment return are uncertain scenario inputs, not forecasts.
  • Tax effects, moving costs, renovations, and differences in home size or lifestyle are excluded unless explicitly entered.

Reviewed references

Sources behind this calculator

Last reviewed: . These references support the concepts and context; their publishers do not review or endorse TrueCost.

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Questions people ask

What does the break-even point mean?

It is the modeled point when one scenario's cumulative financial position catches the other under the current assumptions. Changing rent growth, appreciation, financing, or selling costs can move it.

Why is mortgage principal treated differently from interest?

Principal reduces the loan balance and can become home equity, while interest is a financing cost. Equity still depends on the home's value and the costs of selling it.

Does a lower projected cost mean I should choose that option?

Not by itself. Flexibility, maintenance responsibility, location, space, risk tolerance, and how long you expect to stay can matter as much as the modeled financial difference.

How should I estimate maintenance costs?

Use an amount that reflects the property's age, condition, systems, and local labor costs. Comparing a lower and higher maintenance scenario is often more informative than relying on one estimate.

Use the result as a starting point

Try a conservative scenario and an optimistic one. If the decision only works under one narrow set of assumptions, that is useful information. For a purchase, loan, tax, or investment decision, confirm the final figures with current documents and an appropriately qualified professional.

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