How does the rent vs buy NPV calculator work?

It discounts all future cash flows for both scenarios — rent payments, mortgage payments, maintenance, tax benefits, and estimated resale — to today's value, then compares totals to find which is cheaper over your time horizon.

What discount rate should I use?

Use your expected investment return rate, typically 5–8% for a diversified portfolio, representing the opportunity cost of your down payment.

Rent vs Buy NPV Calculator

Compare renting versus buying a home using net present value analysis. Factors in down payment, mortgage interest, opportunity cost, maintenance, and appreciation to find the true break-even horizon.

Rent vs Buy NPV

Compare renting versus buying a home using net present value analysis. Factors in down payment, mortgage interest, opportunity cost, maintenance, and appreciation to find the true break-even horizon.

Value 1

Value 2

Value 3

Enter values above and press Calculate to see the result.

How It Works

Compare renting versus buying a home using net present value analysis. Factors in down payment, mortgage interest, opportunity cost, maintenance, and appreciation to find the true break-even horizon

Each component has a specific meaning:

Net present value analysis — The net present value analysis recorded for the scenario being assessed.

Note: Interpret the rent vs buy npv result against the thresholds and context described above.

How to Use

Enter the net present value analysis for the scenario you are assessing. Compare renting versus buying a home using net present value analysis. Factors in down payment, mortgage interest, opportunity cost, maintenance, and appreciation to find the true break-even horizon. Use the rent vs buy npv result to inform your calculation.

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