Rent vs Buy Calculator Formula
The Rent vs Buy Calculator formula calculates compare long-term renting and buying scenarios with growth assumptions.
This formula is used because it connects the main inputs directly to the result people need.
It keeps the work clear, so you can change one value and see how the answer moves.
Net buy cost = down payment + mortgage and ownership costs - net home equity; net rent cost = rent paid - invested down payment growth
Rent-versus-buy planning compares total renting costs with buying costs over a chosen stay period. It includes mortgage payments, home appreciation, property costs, selling costs, rent increases, and the opportunity cost of investing cash instead of using it as a down payment.