For informational purposes only. This tool provides estimates based on your inputs and may differ from actual outcomes. It does not constitute financial advice. Please consult a qualified professional before making financial decisions. Terms
Compare the true cost of renting vs. buying, including equity, taxes, and opportunity cost.
P&I + Tax + Ins + HOA
+3% Annually
Renting Wins 10yr+
Saves $82,293 in 10yr
Buying costs $891 more per month
$80,000 down
Renter vs Buyer wealth over 10 years.
Total rent payments over 10 years with 3% annual increases.
Mortgage, taxes, insurance, maintenance, and HOA over 10 years.
Renting + investing wins over 10 years at these assumptions.
Homeownership tax deductions at your 22% bracket over 10 years.
Over 10 years
State & local tax deduction (capped at $10k/yr)
22% bracket deductions
Avg. monthly benefit
The true cost of buying goes far beyond your mortgage payment.
Investment Portfolio
$341,395
Down payment + savings invested at 8% return
See how different down payments affect your monthly cost, PMI, and break-even timeline.
| Down Payment | Loan Amount | Monthly Payment | PMI | Total Interest (30yr) | Break-even |
|---|---|---|---|---|---|
| 5%($20,000) | $380,000 | $2,402 | $158/mo | $484,669 | Not in 10yr |
| 10%($40,000) | $360,000 | $2,275 | $150/mo | $459,160 | Not in 10yr |
| 15%($60,000) | $340,000 | $2,149 | $142/mo | $433,651 | Not in 10yr |
| 20%($80,000)Current | $320,000 | $2,023 | None | $408,142 | Not in 10yr |
| 25%($100,000)Best | $300,000 | $1,896 | None | $382,633 | Not in 10yr |
What if you invested your $92,000 (down payment + closing costs) in the S&P 500 instead?
This comparison shows the growth of your $92,000 if invested in equities vs. used as a down payment. Home equity includes both principal paydown and appreciation at 3.5%. S&P 500 returns use a 7% real (inflation-adjusted) annual return. This is a simplified comparison; actual returns vary.
PRO gives you detailed amortization tables, saved scenarios, and result exports.
Buying a home involves more than mortgage payments. Property taxes at 1.2%, insurance at $150/mo, and maintenance at 1% of home value add significantly to your monthly costs. Your total monthly buying cost is $2,906.
Renting is not "throwing money away." When you rent, the difference between buying costs and rent can be invested. At 8% annual returns, those savings compound significantly over 10 years. The key question is whether home appreciation at 3.5% outpaces your investment returns.
At your current assumptions, renting remains the better financial choice for the entire 10-year horizon. Buying may become favorable with a longer time frame or different market conditions. Transaction costs, which typically add 5-6% at closing, are also worth considering.
Financial analysis is only part of the decision. Homeownership provides stability, creative freedom, and potential tax benefits. Renting offers flexibility, lower upfront costs, and freedom from maintenance. Consider your lifestyle goals, career mobility, and local market conditions alongside these projections.
Putting 20% down avoids PMI (~0.5-1% of the loan annually), but it locks up a large amount of capital. A smaller down payment of 5-10% with PMI can actually make sense if you invest the difference at higher returns. The math depends on your mortgage rate vs. expected investment returns. Run the sensitivity analysis above to see which approach builds more wealth in your scenario.
Every dollar in your down payment is a dollar not invested in the market. The S&P 500 averages roughly 7% real returns after inflation. In many markets, investing the down payment outperforms home equity for the first 5-10 years, especially when factoring in closing costs, maintenance, and property taxes. Only over longer horizons does leveraged home appreciation typically catch up.
Your inputs carry over automatically. Just pick a tool.
Should you rent or buy? Compare the true cost of renting vs buying a home with detailed financial analysis, break-even timeline, and net worth projections.
It depends on your timeline, local market, and financial situation. Generally, buying makes sense if you plan to stay 5+ years. This calculator compares total costs over your chosen timeframe.
Buying costs include mortgage, taxes, insurance, maintenance, and opportunity cost. Renting costs include rent increases, renter's insurance, and investment returns on the down payment difference.
Home appreciation typically runs 3-5% annually. Higher appreciation favors buying. The calculator lets you adjust this rate to model different market conditions.
