Rent vs Buy Calculator

Monte Carlo comparison of buying vs. renting a home

Parameters

Simulation Mode

Historical uses real past data (deterministic). Monte Carlo randomizes years to create new hypothetical scenarios.

Standalone analysis — does not affect Retirement or Time to FI projections

Analysis Period

How many years to compare buying vs renting. Short periods (5-7 years) often favor renting due to transaction costs. Longer periods (10+ years) tend to favor buying if home appreciates.

10 years

1 year50 years

How long you plan to stay before selling

Property & Mortgage

The home you're considering buying. Down payment affects your mortgage size and whether you need PMI (simplified as higher rate here).

Purchase Price ($)

Down Payment (%)

Interest Rate (%)Compare current rates

Loan Term (years)

Closing Costs (%)

Loan: $400k | Down: $100k

Ownership Costs

Annual costs of owning a home beyond the mortgage. Property tax varies by location (0.5%-2.5%). Maintenance is often estimated at 1% of home value per year.

Property Tax (%/yr)

Home Insurance ($/yr)

HOA ($/mo)

Maintenance (%/yr)

Rent Details

The alternative to buying. Rent typically increases 2-4% per year. The renter invests the down payment and any monthly savings compared to buying.

Monthly Rent ($)

Renter's Insurance ($/yr)

Annual Rent Increase (%)

Annual rent: $30,000

Sale & Appreciation

When you sell, expect ~6% in agent fees and closing costs. Home appreciation historically tracks inflation + ~1% (CPI+1%).

Selling Costs (%)

Agent fees + closing typically 5-6%

Use historical appreciation (CPI + 1%)

Initializing simulation...

Should You Rent or Buy?

The rent vs. buy decision depends on more than just monthly payments. FIREwiz models the full financial picture—mortgage costs, property taxes, maintenance, insurance, closing costs, and opportunity cost of your down payment—against renting and investing the difference in a diversified portfolio.

Instead of using a single assumed appreciation rate, the simulator runs hundreds of scenarios using historical market returns to show you a range of outcomes. See how often buying wins vs. renting, the break-even year, and net worth comparisons at every point in the analysis period.

Adjust mortgage terms, down payment, expected rent increases, property appreciation, and your investment allocation to match your situation. Results show both the probability that buying wins and the magnitude of the difference—because a strategy that wins 60% of the time but loses big in the other 40% may not be the right choice for everyone.

Rent vs Buy Calculator

What would you like to know?

Will my savings last?

When can I retire?

Should I rent or buy?

Am I on track?

Parameters

Should You Rent or Buy?