Real Estate & Mortgage
Rent vs Buy (10-Year)
Compare the 10-year net cost of renting versus buying a home, including appreciation and selling costs.
Your inputs
Change any value to update the result instantly.
Buy is cheaper by
2,29,991.2915
Net cost of buying
94,060.8323
Net cost of renting
3,24,052.1238
Home equity after selling costs
2,28,653.2888
Invested down payment (renting)
63,378.9977
A positive headline means buying leaves you better off over the horizon; a negative value favours renting and investing the difference.
Home equity build-up vs cost paid
| Period | Input / invested | Calculated value |
|---|---|---|
| 1 | 1,04,271.4121 | 95,576.7215 |
| 2 | 1,28,542.8242 | 1,11,752.9827 |
| 3 | 1,52,814.2363 | 1,28,555.6259 |
| 4 | 1,77,085.6484 | 1,46,012.892 |
| 5 | 2,01,357.0605 | 1,64,154.5019 |
| 6 | 2,25,628.4726 | 1,83,011.7433 |
| 7 | 2,49,899.8847 | 2,02,617.5629 |
| 8 | 2,74,171.2968 | 2,23,006.6646 |
| 9 | 2,98,442.7089 | 2,44,215.6137 |
| 10 | 3,22,714.121 | 2,66,282.9474 |
Formula and working
Buy net cost = payments + costs − equity built − appreciation; Rent net cost = rent paid + invested down-payment opportunity cost
- 1
Collect the inputs
Home price = 400,000; Down payment = 80,000; Mortgage rate = 6.5 %; Comparable monthly rent = 2,200; Annual home appreciation = 3 %; Annual rent growth = 3 %; Alternative investment return = 6 %; Time horizon = 10
- 2
Apply the formula
Buy net cost = payments + costs − equity built − appreciation; Rent net cost = rent paid + invested down-payment opportunity cost
- 3
Result
Buy is cheaper by = 229,991.2915
Frequently asked questions
Important limitation
This is an educational estimate based only on the values and formula shown. Verify current rates, rules, units, and professional standards before relying on the result. It is not personalized financial or investment advice.
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