SmartHelping / Personal Finance / Real Estate
Rent vs Own Calculator
Compare the long-term financial cost of renting a home with buying one. Set purchase, mortgage, rent and ongoing-cost assumptions, then review total and present-value costs—with or without investing the cash flow differences.
Immediate download after purchase. By purchasing, you agree to the Terms of Service.
See the calculator in action
Follow the assumptions through both housing scenarios.
Watch the walkthrough to see the buying and renting inputs, investment options and comparison outputs. Open the screenshots below to preview the spreadsheet.
Buy / own scenario inputs
Build the ownership case around the home and mortgage.
Enter the upfront cost, loan structure, expected appreciation and ongoing expenses for the home you are evaluating.
Purchase price and down payment
Set the home purchase price and the down payment for the buying scenario.
Mortgage terms
Enter the interest rate, amortization period and loan term. The loan term can differ from the amortization length.
Expected home appreciation
Define the average annual appreciation rate assumed for the property.
Property taxes, HOA and insurance
Include these ongoing ownership costs and set their annual growth rates.
Repairs
Enter repairs as a fixed amount. The annual cost-growth assumptions apply to the other ongoing home costs.
Utilities
Set the ownership scenario’s utility costs and their annual growth rate.
Rent scenario inputs
Set the rent and utility costs over time.
Build a rental case with its own starting costs and growth assumptions.
Monthly rent and annual increases
Enter the starting monthly rent and the annual rent growth rate.
Utilities and annual cost growth
Enter utilities for the renting scenario and the annual rate at which those costs increase.
Investing the cash flow difference
Account for the savings on either side of the comparison.
The investment scenario considers the cash available when one housing choice costs less. Your inputs determine which option has the monthly cash flow advantage.
The upfront difference
Evaluate the effect of investing cash that would otherwise go toward buying the home, including the down payment.
Monthly savings in either scenario
When renting costs less in a month, the rental case can invest the difference. When owning costs less, the ownership case invests that month’s savings instead.
Return and reinvestment assumptions
Set a defined annual rate of return for invested cash and choose whether to reinvest. Review the effect alongside the comparison without investing the differences.
What the calculator reports
Compare costs with and without investing the savings.
Review both scenarios over the lifetime of the mortgage, with present-value comparisons and visualizations.
Simple scenario
Compare the total cost of buying with the total cost of renting, without investing cash flow differences.
Investment scenario
Compare the costs of buying and renting when cash flow surpluses are invested, using your return and reinvestment assumptions.
Present-value cost comparisons
Review the present value of costs for buying and renting in both the simple scenario and the investment scenario.
Visualizations of each scenario
Use the included visualizations to compare the results of the housing and investment assumptions.
How to use the calculator
Start with the two homes and the costs you expect.
Set the buying assumptions
Enter the purchase price, down payment, mortgage terms, appreciation rate and ongoing ownership costs.
Build the rental case
Enter starting rent, rent growth, utilities and utility cost growth for the alternative housing option.
Choose the investment assumptions
Set the annual return assumption and reinvestment choice for the cash flow savings.
Compare the results
Review total costs, present-value costs and visualizations for both scenarios. Adjust the assumptions to evaluate another case.
Who this calculator is for
For people comparing the financial side of renting and buying.
Prospective buyers and renters
Compare the costs of your housing alternatives using your own mortgage, rent and ongoing-expense assumptions.
Households reviewing long-term plans
Explore how cost growth, appreciation and investing the cash flow difference affect the comparison over time.
The calculator focuses on financial outcomes. Lifestyle, flexibility and other personal considerations sit alongside the numbers when choosing where to live.
Also available in these bundles
Need more real estate and financial-planning tools?
This calculator is included in the Real Estate Templates bundle and the Super Smart Bundle.
Real Estate Templates
Explore financial models for property acquisitions, development, financing and real estate analysis.
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Questions before you buy
A few useful details.
What is the difference between the two scenarios?
The simple scenario compares housing costs without investing cash flow differences. The investment scenario also evaluates investing available cash and monthly surpluses, with return and reinvestment assumptions.
Can the ownership scenario invest monthly savings?
Yes. The model accounts for months in which owning is cheaper than renting and invests the ownership scenario’s savings in those periods.
Which ownership expenses are included?
The inputs include property taxes, HOA, repairs, insurance and utilities. Annual growth rates apply to the ongoing costs except repairs, which use a fixed amount.
Can the loan term differ from the amortization period?
Yes. The mortgage inputs include an interest rate, amortization period and loan term, with the term allowed to differ from the amortization length.
What outputs can I compare?
Review total costs and present-value costs for buying and renting over the lifetime of the mortgage, in both the simple and investment scenarios, together with visualizations.
Does the calculator consider non-financial factors?
The template focuses on the financial comparison. Personal preferences, lifestyle and other non-financial factors remain part of your broader housing decision.
Put numbers behind the housing decision
Compare renting and owning with your own assumptions.
Get the Rent vs Own Calculator for $45 and review housing costs, invested savings, present-value comparisons and scenario visualizations.
