Buying
Renting
Your Results
After 10 years, Buying comes out ahead by $87,234. Buying builds $198,456 in equity, while renting + investing grows to $111,222. Break-even point: 4.2 years.
Monthly Cost Comparison
Wealth After 10 Years
Break-Even Analysis
After 4.2 years, buying becomes more financially beneficial than renting.
Wealth Comparison Over Time
See how your net worth grows with each option
Total Cost Breakdown
Total Cost of Buying
Total Cost of Renting
Frequently Asked Questions
No, this is a common misconception. Renting provides valuable flexibility and freedom from maintenance costs. Plus, if you invest the money you'd otherwise use for a down payment and home maintenance, you could build significant wealth. The right choice depends on your situation, timeline, and local market.
Beyond mortgage payments, homeowners pay property taxes (1-2% of home value annually), insurance (0.3-0.5%), maintenance (1-2%), potential HOA fees, and closing costs (2-5% when buying, 6-10% when selling). These can add $500-$1,000+ per month to your housing costs.
Generally, you need to stay 3-5 years to break even on buying due to closing costs and the slow equity building in early years. If you might move sooner, renting often makes more sense financially. Use the calculator above to find your specific break-even point.
The S&P 500 has historically returned about 10% annually (7% after inflation). A conservative estimate of 6-8% is reasonable for diversified index fund investing. If you wouldn't actually invest the difference, use 0% to be realistic about your comparison.