Rent vs Buy Calculator
Compare the long-term financial impact of renting versus buying a home.
Buying details
Renting details
Assumptions
Recommendation
Buying is better
after 10 years
Buying
$234,029
Net worth
Renting
$180,978
Net worth
Break-even point
5 years
Years until buying becomes better than renting
Monthly cost comparison
Buying monthly
$2,923
Renting monthly
$2,000
Net worth over time
Year-by-year comparison
| Year | Buy net worth | Rent net worth | Home equity |
|---|---|---|---|
| 1 | $70,857 | $98,440 | $95,577 |
| 2 | $86,291 | $105,331 | $111,753 |
| 3 | $102,330 | $112,704 | $128,556 |
| 4 | $119,001 | $120,593 | $146,013 |
| 5 | $136,332 | $129,035 | $164,155 |
| 6 | $154,354 | $138,067 | $183,012 |
| 7 | $173,101 | $147,732 | $202,618 |
| 8 | $192,604 | $158,073 | $223,007 |
| 9 | $212,901 | $169,138 | $244,216 |
| 10 | $234,029 | $180,978 | $266,283 |
Key factors to consider
Beyond finances, consider job stability, how long you'll stay, local market conditions, lifestyle preferences, and maintenance responsibilities.
Hidden costs of buying
Closing costs (2-5% of price), maintenance (1-2% annually), property taxes, insurance, HOA fees, and opportunity cost of down payment.
Lifestyle considerations
Renting offers flexibility and less responsibility. Owning provides stability, customization freedom, and potential appreciation. Neither is universally better.