How to use this calculator
- Enter home purchase price, down payment, nominal annual mortgage rate (%), mortgage years, comparison years, monthly rent, annual rent growth (%), annual home appreciation (%), first-year ownership running cost, upfront purchase costs, sale fee (%), renter savings annual effective return (%).
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
Constant scenario rates, monthly end-period savings, year-step rent increases, fixed nominal ownership cost, no tax deductions or opportunity outside the comparison. Negative renter wealth represents funding shortfall, not an actual borrowing product.
Worked example
For the sample inputs shown above, rent versus buy cash-wealth scenario produces a first result of approximately 70000. The assumptions below explain what this result represents.
What the result means
Compare modeled owner equity with renter investment wealth at a common horizon.
Common questions
How is the calculation performed?
Owner equity=appreciated price−sale fee−remaining loan. Renter invests initial down payment plus purchase costs, then the monthly ownership-minus-rent cash-cost difference.
What does the model leave out?
Constant scenario rates, monthly end-period savings, year-step rent increases, fixed nominal ownership cost, no tax deductions or opportunity outside the comparison. Negative renter wealth represents funding shortfall, not an actual borrowing product.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.