Buying builds equity, but it comes with interest, fees and upkeep; renting keeps your down payment free to invest. Enter both sides and how long you expect to stay to see which leaves you wealthier.
The calculator follows two people month by month. The buyer pays the mortgage plus tax, insurance and upkeep; the renter pays rent. Whoever spends less in a month invests the difference, and the renter also invests the money that would have gone into the down payment and buying costs.
At the end of the period the buyer sells: their wealth is the home's value after selling costs, minus the mortgage still owed, plus their investments. The renter's wealth is their investments. The larger figure wins.
Results are very sensitive to home price growth and investment returns, and to how long you stay — buying usually needs several years to recover the costs of getting in and out.
Common questions
Is renting throwing money away?
No. Owners also pay costs they never get back — interest, tax, insurance and upkeep. Renting can win when prices grow slowly, rates are high or you move within a few years.
What price growth should I assume?
Over long periods home prices have often grown roughly in line with inflation plus a little. Try a cautious and an optimistic figure to see how much the answer depends on it.