Should you rent or buy? Compare the true long-term cost of each option.
This tool compares the total financial outcome of buying versus renting over your chosen time horizon. For buying, it calculates mortgage payments, property taxes, and insurance, then credits the equity you build and home appreciation. For renting, it totals rent payments with annual increases and assumes your down payment money is invested at your chosen return rate.
If you plan to stay less than 5 years, renting is usually cheaper because buying costs (closing costs, selling fees, front-loaded mortgage interest) take years to recoup. The longer you stay, the more buying tends to win.
When you rent, your down payment stays invested and growing. A $70,000 down payment at 7% grows to about $137,000 in 10 years. This opportunity cost is real and often overlooked. On the flip side, homeownership builds equity and hedges against rising rents.