How to use Rent or Buy Scenario Calculator

Enter home, mortgage and starting rent amounts in one currency.
Set ownership costs, fees and the constant growth/return assumptions.
Compare yearly balances and review the complete model assumptions.

Example: Rent or Buy Scenario Calculator

Rent or Buy Scenario Calculator: At year 10, modeled buy-minus-rent wealth is 29481.45.

You add

Home price: 300000 Down payment (%): 20 Mortgage annual rate (%): 5 Mortgage term (years): 30 Comparison years: 10 Starting monthly rent: 1500 Annual rent growth (%): 2 Annual home value change (%): 2 Annual ownership costs (% of current value): 2 Purchase fees (% of home price): 3 Sale fees (% of future home value): 6 Annual investment return (%): 3

You get

At year 10, modeled buy-minus-rent wealth is 29481.45. Year Home value Mortgage balance Equity after sale fees Renter account Buy minus rent wealth Buyer cash spent Rent paid 1 306000.00 236459.12 51180.88 74467.28 -23286.40 90515.27 18164.41 2 312120.00 232737.09 60655.71 79853.08 -19197.37 112151.63 36692.11 3 318362.40 228824.63 70436.03 85150.06 -14714.03 133911.51 55590.36 4 324729.65 224712.00 80533.87 90350.54 -9816.66 155797.38 74866.58 5 331224.24 220388.96 90961.83 95446.51 -4484.68 177811.75 94528.32 6 337848.73 215844.74 101733.06 100429.63 1303.43 199957.21 114583.30 7 344605.70 211068.04 112861.32 105291.20 7570.12 222236.36 135039.37 8 351497.81 206046.95 124361.00 110022.15 14338.

Options

Ownership costs: The annual cost percentage follows the modeled current home value. Enter a combined figure that represents the costs you intend to include.
Renter investment account: The renter starts with modeled upfront savings and invests monthly differences. A negative difference is treated as a funding shortfall under the same entered return.

Supported inputs and limits

1–40 comparison years with fixed mortgage inputs and constant entered growth, cost and investment rates. Monthly compounding and end-of-month cash flows. One currency unit; combined ownership costs track home value. Renter invests upfront savings and monthly differences, including modeled negative funding shortfalls at the same rate. No unentered taxes/fees, deductions, inflation or forecast/advice.

Where your input is processed

This tool processes your input in this browser. Your text and files are not uploaded to UseFreeTools. Check this tool's limits for anything it may save on your device.

Change assumptions before drawing a conclusion

Home growth, investment return, rent growth and fees remain constant in this illustration. The modeled difference can change when those assumptions change. Review outstanding mortgage balance, sale fees and the renter account at the same year; the result does not establish which housing choice suits an individual.

Questions about Rent or Buy Scenario Calculator

Is the result a prediction of house prices?

No. Future values follow only the constant rates you enter.

How are monthly savings handled?

The renter account receives the modeled buyer cost minus rent at the end of each month.

What does a negative renter account mean?

It is a modeled funding shortfall that uses the same entered return rate; review whether that assumption fits your situation.

Project manager: Tony Hines · Content updated 4 October 2026 · Report a problem