Rent vs. buy calculator
A fair comparison has to count what the down payment could have earned. Both sides spend the same each month: the renter invests the down payment and closing costs up front, and whichever side's housing costs less that month invests the difference at your investment return (gains taxed). The result is each side's net worth if you sold after the holding period.
New to this question? Read the guide: Is it better to rent or buy a house?
Dashed: money put in. Solid: what it's worth. The gap is growth. The buyer puts money into the home (down payment and principal); the renter invests the down payment and closing costs instead. After that, whichever side pays less for housing that month invests the difference, so once rising rent overtakes the cost of owning, the buyer starts investing too.
The result depends heavily on two guesses about the future. Here's who comes out ahead after 10 years if home prices or investments do better or worse than you assumed.