Is buying always the better option? Let's find out.
The age-old question of whether to buy or rent deserves a data-driven answer. This calculator uses comprehensive cashflow analysis to compare the true costs of homeownership versus renting over time.
All ownership costs are accounted for and it is assumed that you would otherwise invest your down payment and the monthly difference between buying and renting.
Break-even point: 5 years, 6 months
Buying is better from this point on.
Net Worth Comparison
over 25 years
Buying
Property value - Loan balance - Broker fees - Legal fees
Renting
Investment value
Cashflows
The following table shows the detailed monthly costs and values that drive the comparison above. It reveals the complete financial picture beyond just mortgage vs. rent payments.
Note: Selling costs are only actual expenses if you sell at that specific time period.
| Rent | Buying | Values | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rent | Interest | Mortgage payment | Maintenance costs | Other | Selling costs | Investment | Property | Loan balance | ||
| Initial | $0 | $0 | $0 | $0 | $111,000 | $500,000 | $400,000 | |||
| Year 1 | $30,000 | $8,148 | $28,060 | $6,109 | $131,117 | $518,303 | $391,752 | |||
| Year 2 | $30,900 | $9,540 | $28,060 | $6,354 | $152,128 | $539,035 | $383,083 | |||
| Year 3 | $31,827 | $10,995 | $28,060 | $6,608 | $174,079 | $560,597 | $373,970 | |||
| Year 4 | $32,782 | $12,514 | $28,060 | $6,872 | $197,021 | $583,021 | $364,390 | |||
| Year 5 | $33,765 | $14,103 | $28,060 | $7,147 | $221,009 | $606,341 | $354,321 | |||
| Year 6 | $34,778 | $15,765 | $28,060 | $7,433 | $246,100 | $630,595 | $343,736 | |||
| Year 7 | $35,822 | $17,503 | $28,060 | $7,730 | $272,356 | $655,819 | $332,610 | |||
| Year 8 | $36,896 | $19,322 | $28,060 | $8,039 | $299,841 | $682,052 | $320,915 | |||
| Year 9 | $38,003 | $21,226 | $28,060 | $8,361 | $328,624 | $709,334 | $308,621 | |||
| Year 10 | $39,143 | $23,221 | $28,060 | $8,695 | $358,780 | $737,707 | $295,698 | |||
| Year 11 | $40,317 | $25,312 | $28,060 | $9,043 | $390,386 | $767,215 | $282,114 | |||
| Year 12 | $41,527 | $27,504 | $28,060 | $9,405 | $423,526 | $797,904 | $267,835 | |||
| Year 13 | $42,773 | $29,802 | $28,060 | $9,781 | $458,289 | $829,820 | $252,826 | |||
| Year 14 | $44,056 | $32,213 | $28,060 | $10,172 | $494,769 | $863,013 | $237,048 | |||
| Year 15 | $45,378 | $34,744 | $28,060 | $10,579 | $533,066 | $897,533 | $220,464 | |||
| Year 16 | $46,739 | $37,402 | $28,060 | $11,002 | $573,289 | $933,435 | $203,031 | |||
| Year 17 | $48,141 | $40,193 | $28,060 | $11,442 | $615,552 | $970,772 | $184,706 | |||
| Year 18 | $49,585 | $43,127 | $28,060 | $11,900 | $659,976 | $1,009,603 | $165,443 | |||
| Year 19 | $51,073 | $46,211 | $28,060 | $12,376 | $706,691 | $1,049,987 | $145,195 | |||
| Year 20 | $52,605 | $49,456 | $28,060 | $12,871 | $755,836 | $1,091,987 | $123,911 | |||
| Year 21 | $54,183 | $52,869 | $28,060 | $13,386 | $807,559 | $1,135,666 | $101,539 | |||
| Year 22 | $55,809 | $56,462 | $28,060 | $13,921 | $862,017 | $1,181,093 | $78,021 | |||
| Year 23 | $57,483 | $60,246 | $28,060 | $14,478 | $919,377 | $1,228,337 | $53,300 | |||
| Year 24 | $59,208 | $64,233 | $28,060 | $15,057 | $979,820 | $1,277,470 | $27,315 | |||
| Year 25 | $60,984 | $68,434 | $28,060 | $15,660 | $1,043,537 | $1,328,569 | $0 | |||