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There are always cons to renting versus buying a home.

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Also remember that "better" and "worse" are subjective terms. If it costs $25,000 more over 30 years to buy a home rather than to rent, you still might consider buying to be a "better" deal because it's worth the small difference in cost (less than $1000 a year) for the pride and comfort of owning your own home. The calculator simply reports results based on some assumptions; it doesn't tell you what you do. Only you can make that decision.

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Net Spent (before considering investments). This shows you the total of how much you spent for either buying or renting. It's everything you paid out less the value you built. For buying, that's all your expenses, which are offset by the equity you have in your home. As a renter who didn't invest, you don't have any equity. (But some renters do invest, and that's what the remaining lines cover.) Since this Net Spent line item is the total amount spent, the lower number wins. A lower figure means you spent less money.

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It's usually better to buy than to rent, but not in every case, and usually not right away. It usually takes at least a few years for buying to become a better deal than renting. That's because there are some big up-front costs when buying, and your monthly payments from buying are generally higher. However, those payments are building equity in your home -- you're "keeping" some of what you're paying. Also, while you're making your payments, your home generally appreciates in value. After some number of years the equity you've paid into your home plus the appreciation will usually overcome the extra money you had to pay to get into the home. That's what this calculator tells you.

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