Buy vs Rent 30-Year Wealth Calculator
Compare the wealth you’d build over 30 years by buying a home versus renting and investing the difference — home equity against a growing portfolio.
How it works
Buyer wealth = home value − loan balance − 6% sale cost + invested cost savings · Renter wealth = (down payment + monthly cost gaps) grown at the investment return
A fair comparison invests the money each path frees up. The renter invests the down payment they never spent, plus any month where renting costs less than owning. The buyer builds equity as the loan amortizes and the home appreciates, and invests any month where owning costs less than renting. Selling costs of about 6% are subtracted from the home so both sides are measured as cash in hand.
Worked example
On a $400,000 home with $80,000 down at 6.5%, owning costs more than $2,000 rent early on, so the renter invests the gap plus the $80,000 down payment at 7%. Over 30 years the home grows at 3% while the portfolio compounds faster — the winner depends heavily on the gap between appreciation and investment return, which is why this tool lets you test both.
Frequently asked questions
Why can renting build more wealth than buying?
When investment returns comfortably exceed home appreciation, the renter’s invested down payment and monthly savings can outgrow home equity. Buying tends to win when appreciation is strong, you stay put for many years, and the rent you avoid is high relative to ownership costs.
Does this include the down payment fairly?
Yes. The renter is assumed to invest the entire down payment from day one, so buying is not unfairly credited with money the renter could have grown in the market instead.
What is the single biggest swing factor?
The gap between your investment return and home appreciation, followed by how long you stay. Short stays favor renting because the roughly 6% cost of buying and selling is spread over fewer years.
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This is an educational estimate, not financial advice. Real results depend on rates, taxes, fees and market returns that no calculator can guarantee — confirm figures with your lender or a licensed advisor.