DIY Cost Tools
Rent vs. Buy Calculator
FINANCIAL CALCULATOR
Compare estimated rent payments with the cash outflow and sale proceeds from buying a home over the same period.
Total rent paid$161,042
Estimated net buying cost$137,727
Estimated equity at sale$114,062
Lower estimated costBuying by $23,315
How it works
Rent grows annually. Buying includes the down payment, mortgage payments, taxes, insurance, maintenance, remaining loan balance, home appreciation, and selling costs.
Formula
Net buying cost = cash paid while owning − net sale proceeds
Net sale proceeds = future home value − selling costs − remaining mortgage
Important limits
- Closing costs, tax deductions, HOA fees, utilities, renovations, investment returns, and rent deposits are excluded.
- Home values and ownership costs can change unpredictably.
- This is an educational comparison, not mortgage or investment advice.
Frequently asked questions
Can net buying cost be negative?
Yes. Strong assumed appreciation can make sale proceeds exceed modeled cash outflow.
Why is equity not the same as profit?
Equity includes money contributed through the down payment and principal payments.
Review notes
The model uses monthly mortgage amortization and explicitly states costs it excludes. Last reviewed September 30, 2026.