Rent vs. buy calculator
The real comparison isn't mortgage vs. rent — it's total cost of ownership vs. total cost of renting, including what your down payment could earn if invested instead.
Renting
Buying
Assumptions
| Year | Renting | Buying | Δ |
|---|---|---|---|
| 1 | $26,400.00 | $38,271.41 | Rent +$11,871.41 |
| 2 | $53,592.00 | $76,934.82 | Rent +$23,342.82 |
| 3 | $81,599.76 | $116,017.68 | Rent +$34,417.92 |
| 4 | $110,447.75 | $155,549.33 | Rent +$45,101.58 |
| 5 | $140,161.19 | $195,561.20 | Rent +$55,400.01 |
| 6 | $170,766.02 | $236,086.90 | Rent +$65,320.88 |
| 7 | $202,289.00 | $277,162.40 | Rent +$74,873.40 |
| 8 | $234,757.67 | $318,826.19 | Rent +$84,068.52 |
| 9 | $268,200.40 | $361,119.45 | Rent +$92,919.04 |
| 10 | $302,646.41 | $404,086.23 | Rent +$101,439.82 |
Buying cost includes opportunity cost of down payment (invested at 7% / yr). Selling costs estimated at 6%.
What this models
Renting cost: Monthly rent growing at your assumed rate over the horizon.
Buying cost: Mortgage P&I + annual property tax + annual maintenance, minus equity and appreciation gained at sale (with 6% selling costs). The down payment's opportunity cost — what it would have grown to if invested — is added to the buying side.
The break-even year is when cumulative buying costs (net of equity) first fall below cumulative renting costs. If you plan to move before break-even, renting is likely cheaper.