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Rent vs. Buy

See the real cost of waiting another year

General Settings

Time Horizon7 years
Expected Investment Return5.0%
If you invested the down payment and monthly difference.

Rent Scenario

Current Monthly Rent$2,600 /mo
Annual Rent Increase3.0%

Buy Scenario - Financing

Home Price$650,000
Down Payment
$
Down payment: $130,000 (20.0%) · Loan: $520,000
Closing Costs1.5%
Selling Costs (at end)5.0%
Mortgage Rate4.79%
Amortization

Buy Scenario - Ongoing Costs

Property Tax (% of home value/yr)0.8%
Home Insurance (Monthly)
$
Maintenance (% of home value/yr)1.0%
CapEx Reserve (% of home value/yr)0.5%
Condo Fees (Monthly)
$
Expected Home Price Growth3.0% /yr

Advanced Options

Results After 7 Years
Renting wins
Break-even at year 12
Net worth - buy$338,880
Net worth - rent$359,138
Difference$20,259
Monthly buy cost$4,342/mo
Monthly rent$2,600/mo
Assumes difference invested at your return rate

Net Worth Over Time

Monthly Outflow Comparison

Rent Scenario

Total Rent Paid$242,689
Initial Investment$139,750

Buy Scenario

Total Interest Paid$160,334
Total Principal Paid$89,699
Unrecoverable Costs$329,243
Ending Home Value$801,681
Ending Mortgage$430,301
Net worth after 7 years
If you buy$338,880
If you rent + invest$359,138

If you move within 7 years, renting and investing keeps you about $20,259 ahead.

Let’s find a path

Not quite there — but closer than you think.

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Take your numbers with you

Download your rent-vs-buy breakdown. Earns +50 IQ.

Estimates use 0.8% property tax, 1% maintenance, 1.5% closing and 5% selling costs. Guidance only - not financial advice.

Keep going

Your next 3 moves
Affordability Calculator

If buying wins - find your real budget.

Open
True Cost of Owning

See the full monthly picture.

Open
Fixed vs. Variable

Which mortgage strategy wins over 5 years?

Open