What is opportunity cost in housing?

Opportunity cost is the return you miss by locking money into a home instead of investing it in the market. The down payment, equity payments, and extra ownership costs could all be invested instead.

Is renting always better than buying?

No. The answer depends on purchase price, rent levels, market returns, appreciation, how long you stay, and local tax benefits. This calculator helps you compare both scenarios with your own numbers.

What costs does this calculator include?

For owners: mortgage principal and interest, property tax, insurance, and HOA. For renters: monthly rent. Both scenarios account for annual inflation on recurring costs.

Opportunity Cost Calculator

Buy vs rent: compare net worth outcomes when you invest the difference.

Home Purchase

Purchase Price ($)

Down Payment (%)

Mortgage Rate (%)

Monthly HOA ($)

Property Tax Rate (%)

Insurance ($/yr)

Annual Cost Inflation (%)

Renter Scenario

Comparable Rent ($)

Annual Rent Increase (%)

Market Assumptions

Market Return (%)

Home Appreciation (%)

Period (years)

Owner Net Worth

Renter Portfolio

Opportunity Cost

Monthly Cost Comparison

Year 1

Year 10

Year 20

Year-by-Year Comparison

Yr	Owner Cost/mo	Renter Cost/mo	Owner NW	Renter NW

For educational purposes only. Not financial advice. Simplified model -- does not include maintenance, closing costs, capital gains taxes, or rental deposits.

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