Rent vs buy · Free

Should you rent or buy?

A full year-by-year simulation. Appreciation, closing costs, selling costs, PMI, maintenance, rent inflation, and the investment return you'd earn on the down payment — all in one honest number and one clear chart.

Your situation

Everything updates live. Play with the numbers.

Renting
$
%
Buying
$
%
%
%
$
%
Assumptions
%
%
7 yr
1102030

Your down payment carries over from other tools on this site. All saved locally — never sent anywhere.

Renting is cheaper
Renting wins by $12,176 over 7 years — buying never catches up in this window.
Net cost of buying
$169,391
over 7 years
Net cost of renting
$157,215
over 7 years
Break-even year
no crossover in this window
Cumulative net cost
Lower is better — the line that finishes lower is the winner.
  • Buying
  • Renting
01234567Years$0$45k$90k$135k$180k
Home value @ year 7
$491,950
Loan balance
$289,954
Sale proceeds (net)
$172,478
Total rent paid
$203,549
How net cost of buying is computed
Every dollar in, minus every dollar you get back at sale.
Cash out over 7 years
  • Down payment+$80,000
  • Closing costs (3%)+$12,000
  • Principal & interest+$172,204
  • Property tax+$33,715
  • Home insurance+$13,300
  • Maintenance+$30,650
Total cash out$341,869
Credit back at sale (year 7)
  • Home value at exit+$491,950
  • Less: loan payoff−$289,954
  • Less: selling costs (6%)−$29,517
Sale proceeds credited back−$172,478
Net cost of buying$169,391

Gross home equity at exit is $201,995 ($491,950 − $289,954). After 6% selling costs, you walk away with $172,478, which is what we subtract from your total cash outlay.

Assumes 3% closing costs on purchase and 6% selling costs at exit. Rent grows at your entered rate; PMI drops off automatically once loan balance falls below 80% of the original home price.

Renting wins

Renting is smart. Now protect your stuff.

Renters insurance covers your belongings, liability, and displacement — usually under $20/month.

Compare renters insurance

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How this works

Every dollar on both sides of the ledger.

A fair, apples-to-apples comparison

We tally every dollar of buying (down payment + closing + monthly costs − principal paid − appreciation + 6% selling costs) against every dollar of renting (rent inflation, renters insurance, minus the investment return you'd earn on the down payment you didn't spend).

The break-even year

The moment buying overtakes renting on total net cost. Short-term stays almost always favor renting; long-term stays favor buying. Where the crossover happens depends on your rent, rate, and appreciation assumptions.

Your assumptions matter

Home appreciation and investment return are the two biggest levers. We use 3% and 6% as reasonable long-run defaults, but tweak them and see how your break-even year moves.

FAQ

Common questions

Affiliate disclosure: Some links on this page are affiliate links. If you choose to apply through a partner lender we may receive a commission at no additional cost to you. This never influences the calculator's numbers.

Disclaimer: The results here are estimates for educational purposes only and are not financial advice. Actual loan approval, rates and payments depend on many factors and vary by lender. Please consult a licensed professional before making a home purchase decision.

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