Rent or buy calculator: compare net worth over time

Compare buying a home with a mortgage against renting a similar one and investing the difference, year by year, on your own assumptions.

Home price

Down payment (%)

Mortgage interest rate (%)

Mortgage term (years)

Buying costs (% of price)

Ownership costs per year (% of value)

Maintenance, insurance and property tax.

Home price change per year (%)

Rent for a similar home (monthly)

Rent increase per year (%)

Return on savings per year (%)

Compare over (years)

Buyer’s net worth at the end: 294,186
Renter’s net worth at the end: 299,084
Monthly mortgage payment: 1,338.3
Ahead on these assumptions: Renting and investing

Year	Buyer	Renter
1	51,382	62,077
2	63,364	74,680
3	75,984	87,832
4	89,278	101,560
5	103,290	115,889
10	185,744	197,572
15	294,186	299,084

Each month whoever spends less invests the difference; the renter also invests the down payment and buying costs. Selling costs, taxes and changes in interest rates are not included. All growth rates are your assumptions.

How it works

The buyer pays the down payment and buying costs, then each month the mortgage instalment and the ownership costs. The renter pays rent and invests what the buyer put down at the start. Each month, whoever spends less invests the difference at the return you enter. At the end of each year the calculator compares the buyer’s net worth (home value minus the remaining loan, plus savings) with the renter’s savings.

The assumptions decide the answer

Home price growth, rent increases, the mortgage rate and the return on savings change the result more than anything else, and none of them can be known in advance. Try a range of values — for example, home prices that do not rise at all — before drawing a conclusion.

What is not included

Selling costs, taxes on rent, gains or property, changes in the mortgage rate, and the cost of moving are not included. A home is also hard to sell quickly, while investments usually are not.

Updated October 18, 2026