Rent vs. Buy — The Honest Version
Most online calculators lie by leaving out maintenance, closing costs, and what your down payment could have earned invested. This one accounts for all of it.
Renting
Buying
Ongoing home costs
Market assumptions
After 30 years
Renting wins
by $148,778 in net worth
Break-even point
Never
Renting stays ahead the whole horizon
Home equity (after sale costs)
$1,026,732
Renter portfolio: $1,352,858
Net cost over time
Net cost = total cash spent minus assets built (home equity for buying, invested portfolio for renting). Lower line wins.
What this calculator assumes (and doesn't)
- The renter invests the down payment + closing costs from day one, and any monthly cashflow gap when renting is cheaper than owning.
- Home appreciation and investment returns compound annually at the rates you set — real markets are bumpier.
- Tax effects (mortgage interest deduction, capital gains exclusion) are NOT modeled. The standard deduction usually swallows the mortgage benefit anyway.
- Selling costs assume you eventually liquidate the home — if you never sell, equity is paper.
- This is a planning tool, not advice. Run it with your own numbers and talk to a fiduciary before a 7-figure decision.
Disclaimer: This calculator is provided for educational and informational purposes only and produces estimates based on the figures and assumptions you enter, including future home appreciation and investment returns that are not guaranteed. Actual results depend on market conditions, taxes, and terms specific to your situation. Nothing here constitutes financial, investment, tax, or legal advice. Consult a qualified professional before making financial decisions. See our full disclaimer.
Why the answer matters more than the headline
“Buying always wins over renting” is a half-truth that has cost middle-income families a lot of money. The honest math depends on five inputs most calculators quietly omit:
- Maintenance & repairs. Roofs, water heaters, HVAC. Plan for 1% of home value per year.
- Closing costs. 3% in, 6% out. That's a 9% round-trip toll.
- Opportunity cost of the down payment. $45K parked in equity isn't earning 7% in an index fund.
- Property tax & insurance. Half of every monthly payment in some states.
- Time horizon. If you sell before year 5–7, transaction costs usually swamp appreciation.
Run your real numbers above. Then compare the “net cost” lines — whichever ends lower is the option that built more wealth for the same monthly spend.
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