Rent vs Buy Calculator
Compare net worth paths renting (invest down payment difference) vs buying with mortgage, tax, maintenance, and appreciation assumptions — simplified model.
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Buy side
Home, mortgage, carrying costs
Buyer wealth at exit is net sale proceeds after the loan is paid down. Carrying costs inform context but the renter track below assumes you invest the down payment + closing instead.
Rent side
Opportunity portfolio
Advanced mode
Crude % reduction on owner carrying costs (proxy only — not tax advice).
Results
After 7 years (illustrative)
Buyer: net home equity after sale
LKR 200,926.06
Renter: portfolio after rent
LKR -27,549.84
Delta (buyer − renter)
LKR 228,475.90
Buy scenario ahead
Home value
LKR 516,547.02
Remaining loan
LKR 305,045.91
Renter invests the down payment and closing costs, grows at your rate, and pays rent. Buyer path ignores cash-flow differences beyond equity — add your own budget reality check.
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Perspective
Small assumption changes swing the answer
Appreciation, rent growth, investment return, and how long you stay dominate the result.
Non-financial factors (mobility, maintenance, pride of ownership) also matter.
FAQ
Common questions
Does this include transaction costs?
You can add closing costs to the buy side manually in advanced fields where offered.
Is renting “throwing money away”?
Rent buys housing services; buying builds equity but ties up capital and adds risk. Compare total costs and opportunity cost.
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