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 MXN 4,042.25 and starting rent is MXN 2,200.00. These are editable scenario assumptions, not a market average or financial recommendation.
MXN -128,919.67
Renting produces higher estimated net worth after investing the upfront cash and any monthly cost savings.
MXN 303,841.85
Equity after sale costs plus investmentsMXN 432,761.52
Invested portfolioMXN 4,042.25
P&I, tax, insurance, PMI, HOA & upkeepMXN 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 | MXN 463,500.00 | MXN 354,226.74 | MXN 81,463.26 | MXN 127,646.26 | MXN -46,183.00 |
| Yr 2 | MXN 477,405.00 | MXN 347,833.12 | MXN 100,927.58 | MXN 157,245.21 | MXN -56,317.63 |
| Yr 3 | MXN 491,727.15 | MXN 340,752.47 | MXN 121,471.05 | MXN 187,831.19 | MXN -66,360.14 |
| Yr 4 | MXN 506,478.96 | MXN 332,910.95 | MXN 143,179.28 | MXN 219,439.91 | MXN -76,260.64 |
| Yr 5 | MXN 521,673.33 | MXN 324,226.81 | MXN 166,146.12 | MXN 252,108.56 | MXN -85,962.43 |
| Yr 6 | MXN 537,323.53 | MXN 314,609.54 | MXN 190,474.58 | MXN 285,875.80 | MXN -95,401.22 |
| Yr 7 | MXN 553,443.24 | MXN 303,958.84 | MXN 216,277.81 | MXN 320,781.91 | MXN -104,504.11 |
| Yr 8 | MXN 570,046.54 | MXN 292,163.68 | MXN 243,680.06 | MXN 356,868.82 | MXN -113,188.76 |
| Yr 9 | MXN 587,147.93 | MXN 279,101.05 | MXN 272,818.01 | MXN 394,180.20 | MXN -121,362.19 |
| Yr 10 | MXN 604,762.37 | MXN 264,634.78 | MXN 303,841.85 | MXN 432,761.52 | MXN -128,919.67 |
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.