Buy vs Rent Decision Engine
Model housing cash flow, equity, renter investing, and exit assumptions to compare the full financial outcome.
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Inputs
Step 2 - Ongoing Cost Assumptions
Rent Assumptions
Owner Cost Assumptions
Step 3 - Exit and Market Assumptions
Investment scenarios
Set owner and renter contribution amounts, then apply one shared return assumption across both portfolios for the full horizon.
Renter scenario
Owner scenario
Shared growth assumption
Methodology
What This Buy vs Rent Model Covers
This tool is built for people who want more than a monthly payment comparison. It models cash flow, equity, renter-side investing, owner-side investing, and the drag created by transaction costs.
- Compares the full cost of ownership against the full cost of renting over your chosen horizon.
- Includes home equity, renter portfolio growth, owner-side investing, and selling costs at exit.
- Highlights break-even timing so you can see when buying starts to pull ahead, if it does at all.
- Shows the assumptions that drive the answer so you can stress-test optimism before acting.
FAQ
When is a buy vs rent calculator most useful?
It is most useful when your time horizon, down payment, expected rent growth, and investment assumptions could materially change the better option.
Does the model account for opportunity cost?
Yes. The renter can invest avoided upfront cash and any monthly savings, while the owner can also invest if ownership becomes cheaper in a given month.
What should I stress-test first?
Short holding periods, high selling costs, low maintenance reserves, and aggressive appreciation assumptions can all distort the recommendation if left unchecked.