Rent vs Buy Calculator vs Property ROI Calculator
One helps you decide whether to buy a home, the other evaluates investment property returns. Know which applies to your situation.
Rent vs Buy Calculator
The Rent vs Buy Calculator compares the total long-term cost of renting versus purchasing a home for personal use. It factors in rent increases, home appreciation, mortgage costs, tax benefits, and opportunity cost of your down payment to determine which option is financially better over a given time horizon.
Best For
- Deciding whether to rent or buy your primary residence
- Understanding the break-even point for homeownership
- Factoring in local rent growth and appreciation rates
- Making a major life decision with financial clarity
Pros
- Comprehensive cost comparison over time
- Accounts for opportunity cost of down payment
- Includes tax benefits of homeownership
- Shows the crossover point where buying becomes cheaper
Limitations
- Designed for primary residence, not investment properties
- Does not calculate rental income or cash flow
- Projections depend heavily on assumed appreciation and rent growth
Property ROI Calculator
The Property ROI Calculator evaluates the return on investment for a rental or investment property. It considers purchase price, rental income, operating expenses, mortgage costs, and appreciation to calculate cash-on-cash return, cap rate, and total ROI.
Best For
- Evaluating rental properties as investments
- Comparing returns across multiple investment properties
- Calculating cash-on-cash return and cap rate
- Determining if a property generates positive cash flow
Pros
- Multiple return metrics (ROI, cap rate, cash-on-cash)
- Factors in rental income and operating expenses
- Accounts for leverage through mortgage financing
- Helps compare real estate to other investment options
Limitations
- Not designed for personal housing decisions
- Requires accurate estimates of rental income and expenses
- Does not account for vacancy risk or tenant management
Feature-by-Feature Comparison
| Feature | Rent vs Buy Calculator | Property ROI Calculator |
|---|---|---|
| Primary Purpose | Personal housing decision | Investment property analysis |
| Key Question | Should I rent or buy my home? | Will this property generate returns? |
| Rental Income | Not considered (you live there) | Core input for calculations |
| Opportunity Cost | Included (what your down payment could earn) | Shown via cash-on-cash return |
| Tax Benefits | Mortgage interest deduction | Depreciation and expense deductions |
| Output Metrics | Net cost comparison over time | ROI, cap rate, cash flow |
| Time Horizon | How long you plan to live there | Investment holding period |
| Target User | Prospective homeowner | Real estate investor |
When to Use Each Tool
Use the Rent vs Buy Calculator when you are deciding where to live. It answers the personal finance question of whether renting or owning makes more sense given your income, local market, and how long you plan to stay. Use the Property ROI Calculator when you are evaluating a property purely as an investment, where someone else will be paying rent. The two tools serve fundamentally different purposes: one is about your housing cost, the other is about your investment return.
Our Recommendation
If you are deciding whether to buy your first home or continue renting, use the Rent vs Buy Calculator. If you already own your home and are considering purchasing an additional property to rent out, the Property ROI Calculator is the right choice. Some users find value in both: using Rent vs Buy for their personal residence decision and Property ROI for evaluating investment opportunities. The key distinction is whether you will live in the property or rent it to others.