Buying leads in this scenario
$23,818Estimated difference in ending wealth after 10 years. Change the assumptions to test how sensitive the result is.
FINANCIAL CALCULATOR
Rent vs Buy Calculator
Compare modeled wealth from buying a home with the wealth you could keep and invest by renting. Results depend on the assumptions you choose.
If you buy
Estimated home value$604,762
Mortgage balance$305,194
Mortgage P&I / month$2,275
Loan amount$360,000
Wealth after sale costs · year 10$263,283
If you rent
Starting rent$2,500 / mo
Rent growth3.00% / year
Invested upfront cash$103,500
Investment return5.00% / year
Investment wealth · year 10$239,464
WEALTH GAP BY YEAR
Break-even year 8When does ownership catch up?
Year 1Rent +$37,426
Year 5Rent +$18,577
Year 10Buy +$23,818
Year 20Buy +$207,042
Year 30Buy +$619,755
Year-by-year comparisonHome value, mortgage balance and modeled ending wealthView table
| Year | Home value | Mortgage | Buy wealth | Rent wealth | Lead |
|---|---|---|---|---|---|
| 1 | $463,500 | $355,976 | $79,714 | $117,140 | Rent $37,426 |
| 2 | $477,405 | $351,683 | $97,078 | $130,822 | Rent $33,745 |
| 3 | $491,727 | $347,102 | $115,121 | $144,531 | Rent $29,410 |
| 4 | $506,479 | $342,214 | $133,876 | $158,247 | Rent $24,371 |
| 5 | $521,673 | $337,000 | $153,373 | $171,951 | Rent $18,577 |
| 6 | $537,324 | $331,435 | $173,649 | $185,620 | Rent $11,972 |
| 7 | $553,443 | $325,498 | $194,738 | $199,232 | Rent $4,494 |
| 8 | $570,047 | $319,164 | $216,680 | $212,762 | Buy $3,918 |
| 9 | $587,148 | $312,405 | $239,514 | $226,182 | Buy $13,331 |
| 10 | $604,762 | $305,194 | $263,283 | $239,464 | Buy $23,818 |
| 11 | $622,905 | $297,500 | $288,031 | $252,576 | Buy $35,455 |
| 12 | $641,592 | $289,290 | $313,821 | $265,499 | Buy $48,322 |
| 13 | $660,840 | $280,531 | $341,279 | $278,774 | Buy $62,505 |
| 14 | $680,665 | $271,185 | $370,807 | $292,713 | Buy $78,094 |
| 15 | $701,085 | $261,213 | $402,536 | $307,348 | Buy $95,188 |
| 16 | $722,118 | $250,573 | $436,604 | $322,716 | Buy $113,888 |
| 17 | $743,781 | $239,221 | $473,156 | $338,852 | Buy $134,304 |
| 18 | $766,095 | $227,108 | $512,346 | $355,794 | Buy $156,552 |
| 19 | $789,078 | $214,184 | $554,338 | $373,584 | Buy $180,754 |
| 20 | $812,750 | $200,395 | $599,305 | $392,263 | Buy $207,042 |
| 21 | $837,133 | $185,682 | $647,430 | $411,876 | Buy $235,554 |
| 22 | $862,247 | $169,984 | $698,907 | $432,470 | Buy $266,437 |
| 23 | $888,114 | $153,234 | $753,941 | $454,094 | Buy $299,847 |
| 24 | $914,757 | $135,363 | $812,748 | $476,798 | Buy $335,950 |
| 25 | $942,200 | $116,295 | $875,560 | $500,638 | Buy $374,922 |
| 26 | $970,466 | $95,950 | $942,619 | $525,670 | Buy $416,949 |
| 27 | $999,580 | $74,242 | $1,014,183 | $551,954 | Buy $462,230 |
| 28 | $1,029,567 | $51,081 | $1,090,525 | $579,551 | Buy $510,973 |
| 29 | $1,060,454 | $26,368 | $1,171,932 | $608,529 | Buy $563,403 |
| 30 | $1,092,268 | $0 | $1,258,711 | $638,955 | Buy $619,755 |
Planning estimate only. Results are highly sensitive to home appreciation, rent growth, investment returns and transaction costs. The model invests the upfront cash and monthly cost difference for the less expensive option. Tax deductions, PMI, renovations and transaction-specific fees are not modeled unless represented by an editable assumption.
METHOD
Compare wealth, not just monthly bills.
The model gives the renter the cash a buyer would otherwise use for the down payment and purchase closing costs. Each month, whichever option has the lower housing cost invests the difference. The buying side then counts home equity after modeled selling costs, while the renting side keeps its investment portfolio.
Buy wealth = home equity after sale + invested monthly savingsRent wealth = invested upfront cash + invested monthly savings