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This calculator uses a cash-flow method to compare renting and buying on an equal footing. Each year, the renter invests the surplus that the buyer spends on ownership costs (mortgage payments, property tax, maintenance, and insurance) above what the renter pays in rent. At the end of the holding period, the owner sells the home — net of selling costs and remaining mortgage balance — while the renter liquidates the portfolio net of capital gains tax. The option that leaves more after-tax net worth wins. Other calculators I recommend: John Robertson and PWL Capital calculators.