Calculator
Rent versus buy
Owning usually costs more in the early years and less later on. The only useful question is where the lines cross, and whether you expect to still be here.
The year buying moves ahead
Owning usually costs more in the early years and less later on. The only question worth asking is where the lines cross, and whether you will still be here.
- Renting: rent paid
- Buying: net cost after equity
Show the numbers as a table
| Year | Rent paid | Owning, net of equity | Home equity after selling costs | Difference |
|---|---|---|---|---|
| 1 (2026) | $25,800 | $58,350 | $33,479 | Renting $32,550 ahead |
| 2 (2027) | $52,374 | $79,903 | $51,690 | Renting $27,529 ahead |
| 3 (2028) | $79,745 | $101,038 | $70,667 | Renting $21,293 ahead |
| 4 (2029) | $107,938 | $121,731 | $90,445 | Renting $13,794 ahead |
| 5 (2030) | $136,976 | $141,960 | $111,061 | Renting $4,984 ahead |
| 6 (2031) | $166,885 | $161,697 | $132,553 | Buying $5,188 ahead |
| 7 (2032) | $197,692 | $180,917 | $154,960 | Buying $16,774 ahead |
| 8 (2033) | $229,422 | $199,591 | $178,327 | Buying $29,831 ahead |
| 9 (2034) | $262,105 | $217,029 | $202,697 | Buying $45,076 ahead |
| 10 (2035) | $295,768 | $232,538 | $228,117 | Buying $63,230 ahead |
| 11 (2036) | $330,441 | $247,406 | $254,636 | Buying $83,035 ahead |
| 12 (2037) | $366,154 | $261,597 | $282,306 | Buying $104,557 ahead |
| 13 (2038) | $402,939 | $275,073 | $311,182 | Buying $127,866 ahead |
| 14 (2039) | $440,827 | $287,793 | $341,319 | Buying $153,034 ahead |
| 15 (2040) | $479,852 | $299,716 | $372,779 | Buying $180,135 ahead |
- Rent paid over 15 years
- $479,852
- Net cost of owning
- $299,716
- At the end
- Buying $180,135 ahead
- Equity after selling costs
- $372,779
- Owning, month one
- $3,286vs rent $2,150
Estimates only. A simplified comparison that ignores tax deductions and the investment return on the down payment. Sample figures for a demonstration site.
What this model does and does not do
Every rent versus buy calculator is an argument dressed as arithmetic. Ours shows its assumptions and lets you change all of them.
First-time buyer routeBecause we charge the transaction properly. Ours assumes 3.1% of price in buying costs, which in Philadelphia is dominated by the buyer's customary half of the 4.278% transfer tax, and 6% in selling costs. Calculators that ignore those produce a crossover three or four years too early.
Yes, at 1% of value per year by default, which is a conventional planning figure. On a hundred-year-old row home with original systems, 1.5% is more realistic. The field is editable because the right number depends on the building.
This model does not credit renters with investing the difference, which flatters buying slightly. If you would genuinely invest an $40,000 down payment and the monthly difference, push the appreciation input down to compensate.
No. At low appreciation, high maintenance and high transaction costs, renting can stay ahead for the whole fifteen-year window. Try 1% appreciation and 1.5% maintenance and watch what happens. We would rather you saw that here than found out later.
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