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Should you rent or buy? Run the real numbers.
Most "rent vs buy" answers compare a mortgage payment to rent. That is the wrong comparison. Our calculator invests the cash-flow difference on both sides, then shows your ending net worth and the exact break-even horizon.
Rent vs Buy Calculator
Your numbers
= $80,000
Editable assumption — not a live quoted rate.
This dominates the result.
Advanced assumptions
Verdict
Buying comes out ahead if you stay 15 years 4 months or longer.
At your 7-year horizon, renting leaves you about $29,091 better off.
Break-even
15y 4m
Buy net worth · year 7
$183,956
Rent net worth · year 7
$213,047
Net worth over time
Month-1 cash outflow
- Buy (P&I + costs)
- $2,847.62
- Rent (+ insurance)
- $2,015.00
- Mortgage P&I
- $2,022.62
- Upfront cash to buy
- $92,000
What's driving this
- Your 7-year horizon is shorter than the 15y 4m break-even — short horizons favor renting because buying/selling costs are spread over fewer years.
- Your investment return (6%) beats home appreciation (3.5%) by 2.5%, which tilts the math toward renting and investing.
- Rent is assumed to grow 3%/yr — faster rent growth makes buying look better over time.
Year-by-year comparison (data table)
| Year | Home value | Loan balance | Buy net worth | Rent net worth | Difference |
|---|---|---|---|---|---|
| 1 | $414,000 | $316,423 | $68,597 | $107,601 | −$39,004 |
| 2 | $428,490 | $312,607 | $85,889 | $123,730 | −$37,841 |
| 3 | $443,487 | $308,535 | $103,908 | $140,407 | −$36,499 |
| 4 | $459,009 | $304,191 | $122,688 | $157,653 | −$34,965 |
| 5 | $475,075 | $299,555 | $142,264 | $175,493 | −$33,229 |
| 6 | $491,702 | $294,609 | $162,674 | $193,949 | −$31,275 |
| 7 | $508,912 | $289,332 | $183,956 | $213,047 | −$29,091 |
Calculators
Learn the method
We document every formula and assumption so you can trust — and check — the math.
Should You Rent or Buy? The Complete Guide
How the Rent vs Buy Math Works
The Break-Even Horizon, Explained
The Opportunity Cost of Your Down Payment
See our full methodology and glossary.