Buy vs Rent Calculator
A fair comparison has to account for everything: the renter invests the down payment instead of spending it, rent goes up every year, and the owner pays maintenance and selling costs. This one does all of that, then shows you the year buying pulls ahead.
Your situation
The renter invests the cash a buyer would spend at closing, and whichever option costs less each month invests the difference. That keeps the comparison honest.
After 10 years
−$193,163
Renting ahead of buying
Break-even point
Not within this horizon
The first year buying pulls ahead of renting under your assumptions.
Monthly cost of owning
$5,307
Payment, escrow, mortgage insurance and maintenance.
Monthly cost of renting today
$2,820
Growing 3% a year in this projection.
Year by year
| Year | Rent paid | Ownership paid | Home value | Equity | Buy net position | Rent net position | Buying ahead by |
|---|---|---|---|---|---|---|---|
| 5 | $179,587 | $318,430 | $696,970 | $191,471 | +$142,683 | +$267,394 | −$124,711 |
| 10 | $387,586 | $635,276 | $809,612 | $351,821 | +$295,148 | +$488,311 | −$193,163 |
| 15 | $628,524 | $945,066 | $940,459 | $548,640 | +$482,808 | +$739,707 | −$256,899 |
| 20 | $907,645 | $1,254,856 | $1,092,453 | $791,860 | +$715,389 | +$1,034,557 | −$319,169 |
What this says
Staying 10 years, buying comes out +$193,163 behind renting under your assumptions. Buying does not pull ahead within this horizon, largely because upfront and selling costs are spread over too few years.
Try setting appreciation to 0% and then to 5% — if the answer flips, the decision is resting on a market assumption rather than on the loan itself.
Assumptions behind these numbers
- The renter's starting portfolio equals the buyer's cash at closing, invested at the return you entered.
- Income taxes, rent concessions and the value of flexibility are not modeled.
- Property taxes, homeowners insurance, HOA dues and maintenance are estimates you can change; actual amounts vary by property and municipality.
- Home appreciation, rent growth and investment returns are assumptions, not predictions. Real markets move up and down.
- Mortgage insurance figures are estimates. Actual pricing depends on the lender, the mortgage insurer and your credit profile.
- Results ignore income tax effects, such as any deduction for mortgage interest or property taxes.
- Interest rates shown are averages or your own entries, not a rate quote or lock.
Keep going
Educational only: The calculators and information on this website are for educational and illustrative purposes only. Results are estimates based on the information and assumptions entered and are not a loan offer, commitment to lend, financial advice or guarantee of eligibility, rates, costs or savings. Actual loan terms, rates, fees, mortgage insurance and qualification requirements vary by borrower, property, lender and loan program. Speak with a licensed mortgage professional for personalized information.