Buy vs Rent Calculator
Compare long-term wealth growth between buying property and renting.
Buying Inputs
Enter a purchase price and monthly rent to compare
Important Assumptions
This model makes significant simplifications. Tax deductions (mortgage interest, property tax), maintenance variability, local market conditions, lifestyle factors, and life changes are not fully captured. Property appreciation and investment returns are not guaranteed. Use this as a starting point for discussion, not a final financial decision.
Frequently Asked Questions
When you buy, your down payment is locked into the property. If you had rented instead, you could have invested that down payment in the stock market or other assets. The opportunity cost models the potential growth of that down payment had it been invested — making the renting comparison fairer.
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Disclaimer: These calculators are provided for preliminary educational estimations and screening purposes only. Actual real estate figures may vary significantly based on shifting local legislation, specific regional tax requirements, dynamic interest rates, and volatile market conditions. Always consult with a certified financial advisor, tax specialist, or legal professional before executing any binding investment decisions or assuming financial risk.