Understanding the rent vs. buy calculator
Renting and buying trade off differently over time. Renting costs less upfront and stays flexible, but the money is gone each month. Buying demands a down payment and carries taxes, insurance, and maintenance, yet each payment builds equity and the home may appreciate. The deciding factor is usually how long you stay: transaction costs of buying and selling several percent each way take years of equity growth to recover.
This calculator nets the true cost of buying cash paid in, minus the equity you walk away with after selling costs against the rising cost of renting over the same period. It's a simplified model that assumes steady appreciation and ignores the investment return on a renter's savings, so treat the result as a directional guide rather than a precise verdict.
Results are estimates for education only and are not financial advice.