Rent vs Buy Analyzer
Compare the long-run cost of renting versus buying, including mortgage payments, property taxes, maintenance, and an investment return on the “rent instead of buy” path. This is a high-level model for planning, not a precise tax projection.
Time Horizon & Rent
Rent payments are assumed to rise each year at the rent inflation rate.
Home Purchase Details
Mortgage and closing costs are approximated. Property appreciation is applied annually on the home value.
Carrying Costs
Renting Investment Assumption
If you rent instead of buying, this model assumes you invest your foregone down payment and closing costs, plus any annual difference if owning would have been more expensive than renting.
Headline Comparison
*Net cost = total out-of-pocket cash, minus the wealth you have at the end (investments if renting, equity after selling if buying).
Renting plus investing the difference looks financially ahead over this horizon (given these assumptions).
Difference in net cost: $207,938 (renting cheaper than buying).
Home Equity Snapshot
Mortgage amortization here is approximate. Real outcomes will differ with taxes, PMI, and changing insurance or HOA costs.
Year-by-Year Overview
| Year | Rent paid | Owner cash out | Owner − Rent | Invest balance |
|---|---|---|---|---|
| 1 | $26,400 | $42,922 | $16,522 | $72,172 |
| 2 | $27,192 | $43,219 | $16,027 | $91,807 |
| 3 | $28,008 | $43,525 | $15,517 | $111,915 |
| 4 | $28,848 | $43,840 | $14,992 | $132,502 |
| 5 | $29,713 | $44,164 | $14,451 | $153,578 |
| 6 | $30,605 | $44,499 | $13,894 | $175,151 |
| 7 | $31,523 | $44,843 | $13,320 | $197,229 |