Rent vs. Buy Calculator
Same monthly spend in both scenarios — the renter invests every dollar they don't put into the home.
Primary home: the sale gain is tax-free. The renter's portfolio is always taxable.
Buy the home
yrs
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Property tax, insurance, condo fees, upkeep.
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Yearly. Long-run avg is roughly 3–5%.
Rent & invest
%
Maintenance costs grow at this rate too.
%
Yearly. Stock market long-run avg is ~7% real, ~9% nominal.
yrs
Costs & taxes
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Land transfer tax + legal. The renter invests this too.
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Realtor + legal when you sell. Set to 0 if not selling.
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Effective rate on investment gains (50% inclusion × your marginal rate). Also taxes the property's gain if it's an investment property.
Scenario Explorer — Time Horizon
| Year | Buy | Rent + Invest | Lead |
|---|
How this works: Both paths spend the same cash each month. The buyer pays mortgage + maintenance;
the renter pays rent and invests every dollar of difference — plus the full down payment and closing costs invested
on day one. Final net worth for buying = home value − remaining mortgage − selling costs + any side investments.
For renting = the investment portfolio. The renter's account is taxable, so capital-gains tax is applied to its growth at sale.
A primary home sells tax-free; an investment property pays capital gains on its sale gain at the same rate.
Rent and maintenance grow yearly; home, mortgage and investments compound monthly.
Estimates only — rental income, mortgage renewals and rate changes are not modeled.