Time horizon 10 years
1 yr30 yrs
Home & loan details
Home price
Down payment
% = 
Interest rate (%)
Loan term
Closing costs (%)

Typically 2–5% of home price. Paid upfront, not financed.

Selling costs (%)

Realtor fees, transfer taxes, staging. ~5–8% typical.

Buying costs
Annual property tax (%)
Home insurance ($/yr)
HOA ($/mo)
Maintenance (%/yr of value)

1–2% is the standard rule of thumb. Newer homes run lower.

PMI rate (%/yr of loan)
Auto-remove PMI at 80% LTV

Extra principal ($/mo)
Extra principal ($/yr)
Home appreciation (%/yr)

Historical US average: ~3.5–4%. Local markets vary widely.

Mortgage interest deduction

For itemizers only. Reduces effective cost of interest paid. Marginal tax rate applied to interest portion of payment.

Renting costs
Monthly rent ($)
Annual rent increase (%)

US average: ~3–5%/yr. Rent-controlled markets: lower.

Renter's insurance ($/yr)

Typically $120–$250/yr — much less than homeowner's insurance.

Down payment invested
Renter invests the down payment instead of using it for a purchase
Annual return on investment (%)

S&P 500 historical avg: ~10% nominal, ~7% inflation-adjusted. Use a lower rate for conservative portfolios.

Also invest monthly savings

If renting is cheaper month-to-month, invest the difference. If buying is cheaper, renter's portfolio grows more slowly.

Closing cost equivalent
The buyer's closing costs are a renter advantage — treated as additional invested capital for the renter.
Results over time
Buying Renting
Adjust inputs above to see a comparison.
Buying — at year 10
Net wealth (equity minus selling costs)
Renting — at year 10
Net wealth (investment portfolio)

All values in today's dollars (nominal) · Investment returns and appreciation are not guaranteed · This is an estimate, not financial advice · Results highly sensitive to appreciation and investment return assumptions