Everything you need to know about Rent vs Buy, including how to calculate rent vs buy decision, common mistakes, and real-world examples.
Rent vs Buy is designed for one primary goal: Compare net worth trajectories for buying a home versus renting & investing the difference.
By mastering inputs like home price, downpayment, and interest rate, you can deeply model your scenarios to optimize rent vs buy decision. In this guide, we break down exactly how it works.
This tool models rent vs buy decision for common cases so you can compare tradeoffs quickly.
If your scenario is highly unusual, treat the output as a starting point and validate assumptions before committing.
Unit mismatches (like confusing monthly vs annual inputs) are the #1 error. Label each input before typing it.
If a cost exists in reality (fees, taxes, churn), it must exist in your model inputs. If outputs like net worth path and break-even year look too good, a missing cost is usually the reason.
Key inputs: home price, downpayment, interest rate, rent, and investment return.
Be consistent about units (monthly vs annual) and scope (include fees/taxes if they exist in real life).
Compare outputs like net worth path and break-even year across scenarios instead of trusting one number.
If the decision changes under downside assumptions, build a buffer or revise the plan.