Rent vs Buy Calculator
Compare estimated costs of buying and renting over a period you choose. Results depend on your assumptions for rent, home costs, price changes and investment returns.
With the current inputs, estimated monthly ownership costs are BRL 3.614,51 and starting rent is BRL 2.200,00. These are editable scenario assumptions, not a market average or financial recommendation.
BRL -120.533,23
Renting produces higher estimated net worth after investing the upfront cash and any monthly cost savings.
BRL 242.130,54
Equity after sale costs plus investmentsBRL 362.663,77
Invested portfolioBRL 3.614,51
P&I, tax, insurance, PMI, HOA & upkeepBRL 2.200,00
Year 1 monthly rentCalculation is instantly saved in this shareable URL.
🗄️ Saved Comparison Scenarios (Side-by-Side)
Net Worth Trajectory Over Time
Year-by-Year Financial Progression
Tracking home appreciation, declining mortgage balance, buyer equity, and renter investment compounding.
| Year | Property Value | Mortgage Debt | Buyer Net Worth | Renter Net Worth | Net Advantage |
|---|---|---|---|---|---|
| Yr 1 | BRL 463.500,00 | BRL 357.913,78 | BRL 77.776,22 | BRL 122.369,85 | BRL -44.593,63 |
| Yr 2 | BRL 477.405,00 | BRL 355.613,68 | BRL 93.147,02 | BRL 146.366,95 | BRL -53.219,93 |
| Yr 3 | BRL 491.727,15 | BRL 353.077,77 | BRL 109.145,75 | BRL 171.005,56 | BRL -61.859,81 |
| Yr 4 | BRL 506.478,96 | BRL 350.281,86 | BRL 125.808,37 | BRL 196.300,11 | BRL -70.491,74 |
| Yr 5 | BRL 521.673,33 | BRL 347.199,32 | BRL 143.173,61 | BRL 222.265,12 | BRL -79.091,51 |
| Yr 6 | BRL 537.323,53 | BRL 343.800,71 | BRL 161.283,41 | BRL 248.915,28 | BRL -87.631,86 |
| Yr 7 | BRL 553.443,24 | BRL 340.053,69 | BRL 180.182,96 | BRL 276.265,33 | BRL -96.082,38 |
| Yr 8 | BRL 570.046,54 | BRL 335.922,52 | BRL 199.921,22 | BRL 304.330,14 | BRL -104.408,92 |
| Yr 9 | BRL 587.147,93 | BRL 331.367,78 | BRL 220.551,28 | BRL 333.124,63 | BRL -112.573,36 |
| Yr 10 | BRL 604.762,37 | BRL 326.346,09 | BRL 242.130,54 | BRL 362.663,77 | BRL -120.533,23 |
How this rent-versus-buy calculator compares costs
The estimate compares home equity after projected appreciation, remaining mortgage balance and selling costs with the renter's invested upfront cash. Each month, the scenario with lower housing costs can invest the difference. Mortgage payments use a fixed-rate amortization formula; future home values, rent, costs and investment returns are assumptions you can change.
Country-specific costs and tax treatment
Local taxes, insurance, mortgage rules, and transaction costs vary. Enter the costs that apply to your home and verify current rules with a local authority or lender. Investment returns and home-price changes are not guaranteed.
Calculation Methodology & Proof
Rent vs buy
Both paths start with the same cash. The buyer puts it into the house; the renter invests it. Each year we compare net worth.
- Buyer cash outlay: down payment + buy closing, then PITI + maintenance each month.
- A simplified tax deduction reduces buyer cost by interest × marginal rate.
- Renter pays rent (growing) and renter insurance, and keeps the invested stake growing.
- Break-even is the first year buyer net worth exceeds renter net worth.
Important Caveats & Planning Assumptions
- Appreciation, returns, and rent growth are assumptions, not forecasts.
- Transaction costs and taxes on sale are stylized.
Frequently Asked Questions
Expert answers to common questions
Why can renting win on paper?
If the down payment would earn a high return, if you move before break-even, or if buy costs (tax, maintenance, selling costs) are high relative to rent.
Do you include the mortgage interest deduction?
A simplified deduction using your marginal tax rate is applied to interest. Caps, standard-deduction effects, and local tax treatment are not fully modelled.
What is 'advantage'?
Buyer net worth (home equity after selling costs) minus renter net worth (invested cash). Positive means buying is ahead in that year.