G.C. Wagner, CFA - Financial Calculators

Comprehensive Buy vs. Rent Calculator

How to Use This Calculator

Compare the long-term financial implications of buying vs. renting:

  1. Enter Property & Loan Details (including closing/selling costs).
  2. Provide Rental Information.
  3. Input Investment and Tax Assumptions.
  4. Click "Calculate" to see the net worth comparison, yearly breakdown, and break-even point.

This tool models the opportunity cost of renting vs. buying by comparing home equity growth against investment growth.

Property & Loan Details

Range: $1,000 to $100,000,000

Down Payment: $100,000

e.g., legal, title, appraisal. Range: 0.1% to 20%

Range: 0.1% to 20%

Range: 1 to 50 years

Range: 0% to 10%

Range: 0.1% to 10%

Range: -10% to 20%

e.g., realtor commissions. Range: 0% to 15%

Tax rate on property appreciation. Set to 0% if primary residence exempt.

Rental Details

Range: $1 to $100,000

Range: -10% to 20%

Investment & Tax Assumptions

Rate for investing down payment / cost savings. Range: 0.1% to 30%

Tax on investment returns. Set to 0% for tax-sheltered accounts.

If checked, the buyer will invest any savings when mortgage is less than rent, and vice versa.

Summary Comparison (After 30 Years)

Buying Scenario

Final Property Value:$0
(-) Final Mortgage Balance:$0
(-) Estimated Selling Costs:$0
(-) Capital Gains Tax:$0
(+) Invested Payment Differences:$0
Est. Net Worth (Buying):$0
Total Mortgage Payments:$0
Total Other Costs (Tax/Maint.):$0

Renting Scenario

Invested Down Pmt + Costs:$0
Invested Payment Differences:$0
(-) Investment Income Tax:$0
Est. Net Worth (Renting):$0
Total Rent Paid:$0

Final Verdict:

Calculation pending...

Net Worth Comparison Over Time

Yearly Breakdown

Year Prop Value Mortgage Bal Mortgage Pmt Property Costs Buyer Inv Buying Net Worth Rent Paid Renter Inv Renting Net Worth Difference
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Disclaimer

This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Results are estimates based on your inputs and simplified models.

Assumptions like constant growth rates, investment returns, and the exclusion of taxes may not reflect real-world conditions or your specific circumstances. Market conditions, fees, regulations, and personal factors can significantly impact outcomes.

Always consult with qualified professionals before making major financial decisions.