Housing decision tool

Should you rent or buy?

Compare ending net worth under two paths: buying a home, or renting an equivalent place and investing the cash you keep. Principal is treated as equity, while interest, upkeep, and transaction costs remain real expenses.

Your assumptions

Prefill from your zip code

Sets home price and rent to the typical values for your area. Data © Zillow (ZHVI / ZORI).

Home priceEquivalent monthly rentDown paymentMortgage rateHow long you will stayMortgage term

Advanced assumptions

Property taxHome insuranceHOAMaintenancePMIAutomatically stops at 20% equity.Buying closing costsSelling costsHome appreciationRent growthInvestment returnGrow taxes, insurance, HOA and maintenance over timeProperty-based costs follow home value; insurance and HOA use rent growth as a simple inflation proxy.

What the model includes

The renter starts by investing the down payment and purchase closing costs they avoided. Each month, whichever path has the lower housing cash cost invests the difference. The buyer builds equity through principal repayment and appreciation, then pays selling costs at the selected horizon.

This is a planning model, not tax, legal, or investment advice. It does not model itemized tax deductions, capital-gains taxes, refinancing, special assessments, or property-specific risks.