Rent vs. Buy Calculator (2025 Edition)
The math has changed. High rates and flat prices mean renting might finally be the tailored wealth strategy.
Property Details
Rental Comparison
Market Assumptions
The Verdict (10-Year Horizon)
You Should Rent
Financially, Renting leaves you$56,839richer after 10 years.
If You Buy
Upfront Cash
$150,000
Total Monthly Cost
$4,585
Mortgage + Tax + Maint
Net Worth (Year 10)
$525,464
If You Rent
Upfront Invested
$150,000
Monthly Cost
$2,800
Based on Year 1 Rent
Net Worth (Year 10)
$582,302
The "Unrecoverable" Truth: Buying costs nearly $3,500/mo in interest, taxes, and maintenance right now. This is money you never get back. If your rent is less than this number, renting is mathematically "cheaper" on a cash-flow basis, even before investing the difference.
Why 2025 is Different
For decades, the advice was simple: "Rent is throwing money away." But in 2025, that logic is flawed. With mortgage rates hovering around 4-5% and home prices remaining historically high relative to income, the unrecoverable costs of owning (Interest + Tax + Maintenance) often exceed the cost of rent.
This calculator is designed specifically for this economic cycle. It helps you determine if you build more wealth by paying down a mortgage or by renting and investing the difference in the S&P 500.