Real Estate and Economic Insights
Tools / Rent vs. Buy

Rent vs. Buy Analysis

Compare long-term net worth outcomes based on financing, housing costs, market growth, and investment returns.

Home Inputs
Purchase
$
$
%
%
%
Percent of purchase price
%
Agent fees and transaction costs
Ownership Costs
%
Annual rate of home value
$
Monthly amount
%
Annual rate of home value
$
Monthly amount
Rent Inputs
$
Monthly rent today
%
Annual increase
Market Inputs
%
Annual growth rate
%
Annual return on invested cash
Break-even year -- Adjust inputs to compare outcomes.
Year 1 buy cost --
Year 1 rent --
Buy net worth at year 30 --
Rent net worth at year 30 --
Advantage at year 30 --
Net Worth Over Time 0-30 years
-- -- --
Year 0 Year 30
Buy net worth
Rent net worth
Break-even

How this analysis is modeled

This tool compares the projected net worth of buying versus renting over time. Buying builds equity through principal paydown and home appreciation, while renting invests upfront cash and any monthly savings into a separate investment account.

Financing

Mortgage rate, term, and down payment shape the loan balance and interest costs.

Ownership costs

Property taxes, insurance, maintenance, and HOA fees rise with home value assumptions.

Rent path

Rent grows annually and affects how much cash can be invested instead of spent.

Market growth

Home appreciation and investment returns define long-term wealth outcomes.

Break-even definition

The break-even year is the first point where the buying net worth line overtakes the renting net worth line. If it never happens within the 30-year horizon, the tool will indicate that renting stays ahead.

This model ignores tax benefits, opportunity cost of liquidity, and lifestyle preferences. Use it as a directional guide rather than a replacement for personalized advice.