Rent vs buy
Compare renting, buying, investment opportunity cost, and long-term housing equity.
Buy AdvantageBuying ahead
$34,172
25 year horizonBreak-Even Year
Year 20
Buying catches upOwner Net Worth
$852,268
Future dollarsRenter Investment Value
$818,096
Projected value of cash invested instead of buyingInputs
Renting invests the upfront home cash and any annual cash-flow savings.
Home Purchase
$
$
%
Years
Years
Renting
$
%
%
Ownership Costs
%
$
$
%
%
%
Growth
%
%
First-Year Monthly Cost
Rent$2,800
Owner Cost$3,619
Cash to Close$115,000
Loan Amount$400,000
Principal & Interest$2,594
Net Worth Comparison
Owner net worth versus renter investment balance in future dollars.
Annual Housing Cost
Annual rent compared with annual owner cash cost.
Yearly Comparison
Rounded annual values over the analysis horizon.
| Year | Rent | Owner Cost | Home Value | Owner Net Worth | Renter Investment Value | Buy Advantage |
|---|---|---|---|---|---|---|
| 1 | $33,600 | $43,433 | $515,000 | $88,363 | $132,883 | -$44,520 |
| 2 | $34,608 | $43,802 | $530,450 | $107,446 | $151,378 | -$43,932 |
| 3 | $35,646 | $44,182 | $546,364 | $127,282 | $170,510 | -$43,228 |
| 4 | $36,716 | $44,573 | $562,754 | $147,906 | $190,303 | -$42,397 |
| 5 | $37,817 | $44,976 | $579,637 | $169,356 | $210,784 | -$41,428 |
| 6 | $38,952 | $45,392 | $597,026 | $191,670 | $231,979 | -$40,309 |
| 7 | $40,120 | $45,820 | $614,937 | $214,891 | $253,917 | -$39,026 |
| 8 | $41,324 | $46,260 | $633,385 | $239,061 | $276,627 | -$37,567 |
| 9 | $42,563 | $46,714 | $652,387 | $264,226 | $300,142 | -$35,916 |
| 10 | $43,840 | $47,181 | $671,958 | $290,436 | $324,493 | -$34,056 |
| 11 | $45,156 | $47,663 | $692,117 | $317,742 | $349,715 | -$31,972 |
| 12 | $46,510 | $48,159 | $712,880 | $346,199 | $375,843 | -$29,644 |
| 13 | $47,906 | $48,670 | $734,267 | $375,863 | $402,916 | -$27,053 |
| 14 | $49,343 | $49,196 | $756,295 | $406,796 | $430,973 | -$24,177 |
| 15 | $50,823 | $49,738 | $778,984 | $439,062 | $460,056 | -$20,993 |
| 16 | $52,348 | $50,296 | $802,353 | $472,730 | $490,208 | -$17,478 |
| 17 | $53,918 | $50,871 | $826,424 | $507,872 | $521,475 | -$13,603 |
| 18 | $55,536 | $51,463 | $851,217 | $544,563 | $553,905 | -$9,342 |
| 19 | $57,202 | $52,073 | $876,753 | $582,886 | $587,549 | -$4,663 |
| 20 | $58,918 | $52,701 | $903,056 | $622,926 | $622,461 | $466 |
| 21 | $60,685 | $53,348 | $930,147 | $664,774 | $658,695 | $6,079 |
| 22 | $62,506 | $54,014 | $958,052 | $708,527 | $696,312 | $12,215 |
| 23 | $64,381 | $54,701 | $986,793 | $754,287 | $735,374 | $18,913 |
| 24 | $66,313 | $55,408 | $1,016,397 | $802,162 | $775,945 | $26,217 |
| 25 | $68,302 | $56,136 | $1,046,889 | $852,268 | $818,096 | $34,172 |