MarketPathAcademy

Rent vs buy

Compare your net worth after several years of buying a home versus renting and investing the difference.

What you enter

  • Home price
  • Down payment
  • Home loan rate
  • Loan term
  • Years to compare
  • Monthly rent for a similar home
  • Yearly rent increase
  • Yearly home price growth
  • Return on invested savings
  • Maintenance, tax and insurance (% of home value a year)
  • Buying costs (stamp duty, registration)
  • Selling costs

How this is calculated

  • Buyer pays the down payment and buying costs upfront, then EMIs and upkeep; renter invests that upfront amount instead.
  • Each month, whoever spends less invests the difference at the investment return.
  • Net worth if buying = home value − selling costs − loan outstanding + buyer's investments. If renting = renter's investments.

More in this category

⌂ Mortgage payment (PITI)⟲ Home loan refinance break-even▦ Rental property ROI

These calculators show illustrative outcomes only. Returns are not guaranteed. Tax rules and rates change; verify them before acting. Nothing here is financial, tax or legal advice.