Spending Smarter - Rent or Buy a Home Calculator

Should you rent or buy a home and what are the long-term costs? On the one hand, you're tired of your landlord. On the other hand, buying a home likely means borrowing a lot of money. As well, when buying a home you must make a down payment, money that could otherwise be invested or put into savings. What should you do?

Your Information

(Modify the values presented below according to your needs)

$
$
%
%
Input related to the purchased residence:
%
$
 months
$
%
$

Input related to the rented residence:

$
$

Your Result

Total Wealth, Real Dollars

If savings are all reinvested

Years Buy House Rent House Difference
5 $ $ $
10 $ $ $
15 $ $ $
30 $ $ $

If savings are not reinvested

Years Buy House Rent House Difference
5 $ $ $
10 $ $ $
15 $ $ $
30 $ $ $

Important notice: This calculator assumes that if you rent, you will invest all the money you would have used as a down payment. In addition, the calculator assumes that the money saved from renting relative to owning a home would also be invested. Many (perhaps even most) people may be tempted to spend rather than invest the savings. For those with less than iron self discipline, buying a home could constitute a form of forced savings.

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