Finance · Mortgage
Rent vs Buy
Compare renting and buying outcomes at 5 and 10 years with equity and breakeven horizon.
Last reviewed: February 18, 2026
Guided Flow
Next steps
Ownership
Run home cost 30-year
Stress-test ownership cost assumptions beyond year 5.
Finance
Re-check mortgage payment
Fine-tune financing assumptions for the buy scenario.
Guide
Read: rent vs buy horizons
Understand 5-year and 10-year tradeoffs with clear assumptions.
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What this calculator does
Compare renting and buying outcomes at 5 and 10 years with equity and breakeven horizon.
How it's calculated
- Inputs are validated before running the calculator-specific compute() function.
- Core math is deterministic and implemented in src/lib/calculators/rent-vs-buy.ts.
- Results are recalculated instantly as values change and are shareable via query parameters.
- Disclosure assumptions and limitations are shown on-page for decision context.
Example
Example scenario: Monthly rent = 2900 USD; Annual rent increase = 3 %; Home price = 650000 USD; Down payment = 130000 USD. Sample output: 5-year net worth difference (buy - rent): $78,146.46
Common mistakes
- Using optimistic rates or appreciation assumptions without testing a conservative case.
- Ignoring taxes, insurance, HOA, or maintenance in monthly cost planning.
- Treating modeled outputs as guaranteed quotes rather than planning estimates.
- Not comparing at least two scenarios before making a financing decision.
- Skipping professional review for legal, tax, underwriting, or insurance details.
FAQs
Does buy total cost include the down payment?
No. Down payment is treated as equity capital, not a recurring housing expense, and is captured indirectly in net worth comparison.
Why can buying cost more but still improve net worth?
A portion of mortgage payments builds principal, and home appreciation may increase equity. Net worth comparison captures that effect.
Does this include selling costs and taxes on sale?
No. This model is a planning estimate and does not include transaction costs when exiting the property.
How is breakeven year calculated?
It is the first modeled year where estimated buying net worth exceeds the renting alternative under the current assumptions.
Should I trust one exact output year?
Use this as a directional estimate. Small changes to appreciation, rent growth, or investment return can shift breakeven timing materially.