Rent vs. buy
Rent or buy? See the crossover
Every month, rent covers your landlord's mortgage, taxes, insurance, and upkeep, and it climbs year after year, while you build no equity of your own. Buying costs more up front but turns those same payments into ownership. This tool weighs both sides honestly, with every assumption in your hands, and shows the year buying pulls ahead.
Rent vs. buy, the honest version
Run your numbers
Enter a home price, the rent on a comparable place, and how the loan looks. The estimate updates as you type. Defaults use statewide Utah averages, and every assumption below, including whether prices rise at all, is yours to change.
The basics
The price of the home you would buy.
Optional, and a lever renters do not have. See what it does in "The power of a little extra" below.
Default rate as of the date shown. Rates change frequently and are not a quote.
Assumptions you can change
Pre-filled with statewide Utah averages. Every one is an editable assumption, not a forecast. Change any to match your situation.
The home-appreciation default reflects a long-term Utah assumption you control, not a forecast. Lower it to stress-test a flat market.
A long-term assumption you control, not a forecast. Southern Utah has historically run higher; lower it to stress-test a flat market.
About these estimates
Estimates only. This is not a quote, offer, pre-approval, or commitment to lend. Figures are illustrative and depend on the assumptions you choose.
This tool is for general information only. It is not legal, tax, investment, or financial advice. Consult a qualified professional for guidance specific to your situation.
Want numbers tailored to you? Let's talk.
Your break-even point
The year buying's net worth overtakes renting, at your assumptions.
Drag to set how long you plan to stay. The verdict below updates as you move it.
Enter a price and rent to compare.
Buying and renting are each scored as an estimated net worth over the years you stay.
Estimates only, not a quote, offer, pre-approval, or commitment to lend. Talk to Scott for numbers built around you.
The equity you build
Every mortgage payment buys you a piece of the home. Rent buys your landlord one. Here is the home equity you would build by owning, against zero as a renter.
Over 30 years you would pay about $0 in rent and own nothing, while a buyer could be sitting on roughly $0 in a paid-off home. Your rent already covers your landlord's property taxes, insurance, upkeep, and profit, and it rises every year. Buying turns those same dollars into equity that is yours. Estimated home value before selling costs, which run about 8% if and when you sell. The comparison further down subtracts those selling costs.
The power of a little extra
Here is something renting can never offer. As an owner you can add a little to your payment each month, and every extra dollar goes straight to principal, which is equity that is yours. It pays the loan off years early and saves you a pile of interest. A renter has no such lever: rent only goes one way, up, and none of it ever comes back. Here is what a little extra would do on the loan you entered above.
| Extra / month | Loan paid off in | Interest you save |
|---|---|---|
| +$50 | N/A | N/A |
| +$100 | N/A | N/A |
| +$200 | N/A | N/A |
These figures use the loan above and assume you keep paying the extra until the loan is gone. Type an amount in the Extra payment field, or tap a chip, to fold it into the comparison and the chart too. Paying extra is a choice; it is also estimates only, not a commitment.
- Home equity, after selling costs
- $0
- Side investments
- $0
- Net worth
- $0
- Home equity
- $0
- Down payment + closing, invested
- $0
- Monthly savings, invested
- $0
- Net worth
- $0
Net worth assumes you sell at year 13 and pay selling costs. The renter starts with the buyer's down payment and closing costs invested, and whichever path costs less in a given month invests the difference. A buyer's "side investments" usually sit near $0 for years, because owning costs more than renting at first, and only grow once the loan is paid off or rising rent passes the house payment.
The crossover
Estimated net worth each year, buying versus renting. Where the buying line passes the renting line is your break-even.
| Year | Net worth if you buy | Net worth if you rent |
|---|
Keep exploring
Other tools for the same decision.
All calculatorsWant the long-form version? Read the rent vs. buy guide.
How to use it
Make the inputs yours
The defaults use statewide Utah averages so the comparison is useful the moment it loads. It gets sharper the more you tailor it to the home you are weighing, the rent you would actually pay, and how long you expect to stay.
Enter the home and the rent
Put in the price of the home you would buy and the rent on a comparable place. The whole comparison hangs on matching those two fairly, so use a rental you would genuinely consider.
Set the loan
Tap the unit to enter the down payment as a percent or a dollar amount, then the rate and term. A larger down payment is also more cash a renter could have invested instead, which the tool accounts for.
Tune the assumptions
Appreciation, rent growth, investment return, taxes, insurance, and upkeep are all editable. The appreciation default reflects a long-term Utah assumption, not a forecast, and you can lower it to stress-test a flat market.
Set how long you will stay
Drag the stay-length slider. Time is the biggest lever here: the longer you stay, the more the up-front costs of buying have to work in your favor against rising rent.
Read the crossover
The tool finds the break-even year where buying's net worth passes renting's, and names which is ahead at the horizon you pick. When the two are close, it says so plainly.
Ready for real numbers?
This frames the decision. When you want figures tied to a specific home, price range, or loan, let's run them together.
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Questions about this rent vs. buy calculator
How does this rent vs. buy calculator work?
It compares two futures side by side over the years you plan to stay. On the buying side it adds up your mortgage principal and interest, property taxes, homeowners insurance, maintenance, and any HOA fees, then credits you the equity you build and any home-value change you enter. On the renting side it adds your rent and renters insurance, and it invests the money a buyer would have tied up in a down payment and closing costs, plus any month renting costs less. The result is an estimated net worth for each path, year by year.
What is the break-even point?
The break-even point is the first year your estimated net worth as a buyer catches up to and passes your estimated net worth as a renter. Before that year, renting leaves you with more; after it, buying does. A shorter stay usually favors renting, because the up-front costs of buying have less time to pay off.
Does it assume my home will rise in value?
It uses a hypothetical long-term appreciation assumption that you control, and you can change it to anything, including zero, to see how it shifts the result. It is a starting assumption, not a forecast or a promise of future value. Lower it to stress-test a flat market, or raise it for a stronger one.
Why does renting sometimes come out ahead?
Buying carries large one-time costs, closing costs going in and selling costs coming out, and your down payment is money that could otherwise be invested. Over a short stay those costs dominate, so renting and investing the difference can leave you with more. The longer you stay, the more time equity, fixed mortgage payments, and rising rents have to tip the math toward buying.
Are these numbers a guarantee?
No. Every figure here is an illustrative estimate built from the assumptions you choose, not a quote, an appraisal, or a promise of any result. Real outcomes depend on the home, your loan, taxes, insurance, market conditions, and how long you actually stay. Use it to frame the decision, then talk it through for numbers specific to you.
How do extra payments help, and can a renter do the same?
Any amount you add above your regular mortgage payment goes straight to principal, so it shrinks the loan, builds equity faster, and saves interest, often paying the loan off years early. The power-of-a-little-extra table shows what 50, 100, or 200 dollars a month would do on your loan. A renter cannot do this. Rent only pays your landlord, it builds you no equity, and it tends to rise over time.
Looking for the rest of the suite? Browse all calculators or head back to resources.
Renting or buying, let's run your real numbers
This tool frames the decision with honest assumptions. When you want figures tied to a specific home, a price range, or the loan you are weighing, let's talk it through together.