Interactive Simulator
Rent vs. Buy Simulator
Should you rent or buy? Explore the numbers, change the assumptions, and see when — or if — buying becomes the better financial choice.
Along the way, see how housing costs actually break down — including the unrecoverable costs of both renting and owning.
Estimated Rent for Comparable Property: $1,950/mo
Use this if you want to compare renting a similar home instead of your current rent.
Rental quality comparison
Quality of life in this rental is Similar compared to the purchased home option.
For interpretation only. This does not change the calculator math.
After 20 years
Buying builds more wealth
by $32,693
Quality context: quality of life is assumed similar between renting and buying.
Buying wealth
$532,279
Renting wealth
$499,586
After 20 years
Buying builds more wealth
by $32,693
Quality context: quality of life is assumed similar between renting and buying.
Buying wealth
$532,279
Renting wealth
$499,586
Housing wealth over time
Unrecoverable housing costs over time (Cumulative)
Conventional wisdom says that renting is “throwing away” money. The chart below shows the real comparison: both paths have substantial unrecoverable (non–equity-building) costs—rent in full, and for owners, interest, taxes, maintenance, insurance, and more.
Year 1
Year 5
Year 10
Year 20
Year 30
Hover or tap a year section to see cumulative cost details.
Monthly cost (initial)
Detailed breakdown
Home equity
$578K
Investment portfolio
$500K
Mortgage payment
$2,149/mo
Down payment
$85,000
Total buying costs
$816K
Total renting costs
$713K
What’s driving this
At these settings, buying builds $578K in home equity over 20 years while the renter's investment portfolio would reach $500K. After accounting for estimated selling costs, buying produces a stronger financial position. The crossover happens around year 17. This compares buying and renting a similar-quality home, so the financial gap is closer to an apples-to-apples comparison.
This simulator is for educational purposes only and does not constitute financial advice. Results are estimates based on the assumptions provided. Actual outcomes will vary based on market conditions, tax implications, maintenance costs, and other factors not fully captured here. Selling costs are estimated at 6% of home value. Consult a financial advisor for personalized guidance.