How it works
The renter invests the down payment plus purchase closing costs. Each month both investment balances grow, then the lower-housing-cost side invests the difference. Compare buyer sale equity plus investments with renter investments.
Input definitions
- Home price
- Enter the value in the labeled unit.
- Down payment
- Enter the value in the labeled unit.
- Nominal annual mortgage interest (%)
- Enter the value in the labeled unit.
- Mortgage term (months)
- Enter the value in the labeled unit.
- Comparison years (1–50)
- Enter the value in the labeled unit.
- Purchase closing cost (%)
- Enter the value in the labeled unit.
- Selling cost (%)
- Enter the value in the labeled unit.
- Annual property tax, insurance, maintenance and fees
- Enter the value in the labeled unit.
- Starting monthly rent
- Enter the value in the labeled unit.
- Annual rent growth (%)
- Enter the value in the labeled unit.
- Annual home appreciation (%)
- Enter the value in the labeled unit.
- Annual effective investment return (%)
- Enter the value in the labeled unit.
A worked example
- Home price
- 200000
- Down payment
- 40000
- Nominal annual mortgage interest (%)
- 5
- Mortgage term (months)
- 300
- Comparison years (1–50)
- 5
- Purchase closing cost (%)
- 2
- Selling cost (%)
- 5
- Annual property tax, insurance, maintenance and fees
- 4000
- Starting monthly rent
- 1000
- Annual rent growth (%)
- 2
- Annual home appreciation (%)
- 2
- Annual effective investment return (%)
- 4
Assumptions & limits
Single-currency illustration using your entered amounts and rates, not a recommendation, approval or forecast. No automatic tax rules or market data. Rates are constant assumptions. Property overhead is fixed annually; rent changes annually; home and investments grow monthly from effective annual rates.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-17. Content checked against the stated method and examples. Our verification approach.
Common questions
Is a rent-versus-buy result a recommendation to purchase?
No. It is a comparison under your assumptions, including invested cash differences and sale costs. Appreciation, investment returns, repairs, tax and the time you stay can change the outcome.
How does Rent versus buy net-worth scenario work?
The renter invests the down payment plus purchase closing costs. Each month both investment balances grow, then the lower-housing-cost side invests the difference. Compare buyer sale equity plus investments with renter investments.
What are the limits of Rent versus buy net-worth scenario?
Single-currency illustration using your entered amounts and rates, not a recommendation, approval or forecast. No automatic tax rules or market data. Rates are constant assumptions. Property overhead is fixed annually; rent changes annually; home and investments grow monthly from effective annual rates.
How do I keep the full worksheet?
Run the tool and choose Download file. The on-page table is a preview and may show only the first 20 rows; the downloaded file contains the full result. CSV downloads escape spreadsheet formula prefixes. Inputs and files are processed on your device.