Rent vs. Buy Calculator
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210 Mortgage | NMLS #219381
Compare the wealth effects of renting and buying
Use this rent vs. buy calculator to model housing costs, sale proceeds and invested cash under the same household budget. Test your own growth assumptions instead of assuming ownership always wins.
Your scenario estimate
Complete the numbered sections, then select Calculate.
- Buyer modeled net assets after sale
- Renter modeled invested assets
- Modeled final home value
- Final mortgage balance
- Buyer total housing cash paid, including upfront
- Renter total rent and insurance paid
- First-month ownership outflow
- First-month rent and insurance
- First modeled buying crossover
Swipe or scroll the comparison table to see every column.
| Year | Home value | Mortgage balance | Buyer net assets | Renter assets | Buying minus renting |
|---|
The renter starts by investing the cash otherwise used for down payment and purchase costs. Each month, whichever option costs less invests the difference. Both portfolios use the same assumed return. This requires actually investing those savings.
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Educational estimates, not approval, a rate quote or a commitment to lend. Entered rates are hypothetical modeling assumptions, not currently available 210 Mortgage rates. No APR calculation, ARM changes or automatic eligibility decision. Future growth and returns are assumptions, not forecasts. Tax treatment and legal/property decisions require individualized review. 210 Mortgage • Tyler Krug NMLS #219381 • Mortgage loans originated through My Community Mortgage, LLC NMLS #2408499 • Equal Housing Lender. See site licensing and disclosures.
How to Use the Rent vs. Buy Calculator
Step 1: Purchase and mortgage
Enter the purchase price, down-payment percentage, purchase costs paid in cash, interest rate and loan term. Purchase costs should exclude the down payment. The model assumes no financed upfront fees and no second mortgage.
Step 2: Monthly housing costs
Enter monthly rent and renter insurance. Enter annual property taxes and homeowners insurance, monthly HOA and monthly mortgage insurance. MI is held constant until the modeled mortgage is paid off; the tool does not determine earlier cancellation.
Step 3: Holding period and future assumptions
Enter how many years you expect to hold the home. Set annual home appreciation, investment return, rent increases and other cost inflation. Investment return should reflect your assumed net return after applicable fees/taxes. Enter maintenance as an annual percentage of evolving home value and selling costs as a percentage of final home value.
Calculate, compare and request a review
Choose Calculate to see your estimate. Change one assumption at a time and calculate again. Contact information is optional. Use the review form or Text a Question when you need help verifying the inputs.
How the Calculator Works
The model advances monthly. Mortgage payments stop at maturity. Home value grows at the monthly equivalent of entered annual appreciation. Rent and base taxes/insurance/HOA increase once yearly; maintenance tracks home value monthly. Both portfolios grow at the monthly equivalent of the entered net investment return before that month's contribution. The cheaper housing option invests that month's cost difference. Buyer ending assets = portfolio + home value − selling costs − mortgage balance. Renter ending assets = portfolio. The crossover is the first monthly endpoint where buyer assets are at least renter assets; it may reverse later.
Example calculation
A $400,000 home with 20% down starts with a $320,000 mortgage. With $8,000 cash purchase costs, the renter starts by investing $88,000 instead. A 6% sale-cost assumption on an unchanged $400,000 value subtracts $24,000 from the buyer's sale proceeds before the remaining loan is repaid.
How to interpret your results
A positive buying-minus-renting amount favors buying for modeled ending assets, while a negative amount favors renting. Cash paid is shown separately from assets and is not itself the wealth result. Lifestyle, mobility and liquidity remain separate considerations.
Assumptions and factors that change the result
No income-tax deduction, capital-gains tax, security deposit, moving costs, financed fees, future refinance, extra principal or automatic MI cancellation. Investment returns are user-entered net assumptions. Sale costs are applied to final value. Property-cost growth is not a homestead or appraisal-law calculation. Investment contributions assume equal household budgets and actual saving of the difference.
Frequently asked questions
Does the renter invest the down payment?
Yes. The renter starts with the buyer's down payment plus purchase costs invested, and either option invests its monthly housing-cost savings.
Does a crossover guarantee buying stays ahead?
No. The tool reports the first modeled crossing within the selected period. Later costs or negative growth can reverse it.