What does this calculator do?
Both households start with the same available cash. The owner spends the down payment and buying costs; the renter invests that amount. Each month, whichever household has the lower modeled housing cost invests the difference. The owner repays a fixed-rate loan and receives net sale equity at the end. The year-by-year table compares these two housing-related wealth balances, rather than treating every mortgage dollar as a lost expense.
How to use it
- Use comparable homes and an interest rate from a real quote.
- Choose your likely stay and enter local annual ownership costs.
- Try lower home appreciation, higher repairs, and a shorter stay to see how sensitive the result is.
The math, made clear
Owner wealth = sale value − selling costs − remaining loan + invested monthly savings; renter wealth = invested upfront cash + invested monthly savingsA worked example
On a $350,000 home with 20% down and 3% buying costs, the renter starts with $80,500 invested. The buyer begins with home equity and a $280,000 loan. The model then tracks their different monthly housing costs, loan balance, investment growth, and hypothetical sale proceeds over your chosen stay.
What to keep in mind
A simplified nominal, pre-tax scenario. It excludes income-tax deductions, capital-gains taxes, renters insurance, deposit opportunity cost, utilities, moving costs, and variable-rate loans. Annual property bills and HOA stay flat. Entered mortgage insurance stays constant until the scheduled loan term ends; early cancellation is not modeled. Rent and property value change at your chosen rates. It assumes all monthly savings are invested. Its final-period advantage is not a guarantee or a permanent break-even claim.
All default values are illustrative. Results are rounded for display; calculations use full precision except where a split must allocate exact cents. Read our methodology for shared definitions and report a calculation issue if a result looks wrong.