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Rent vs Buy — Compare True Costs

Compare net cost of buying (minus equity) vs renting (plus investment growth). Break-even typically 5+ years.

Concept Fundamentals
Rent
Recommendation
$195,103
Net Buy Cost
$169,296
Net Rent Cost
$25,807
Difference

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5+ years buy often wins 1-2% maintenance/yr Opportunity cost matters Non-financial factors count

Key figures
Rent
Recommendation
Key figure
$195,103
Net Buy Cost
Key figure
$169,296
Net Rent Cost
Key figure
$25,807
Difference
Key figure

Ready to run the numbers?

Why: Time horizon is crucial. Buy wins after 5+ years. Consider opportunity cost of down payment.

How: Compare: Buy total cost - equity vs Rent total + investment growth. Break-even = when equal.

5+ years buy often wins1-2% maintenance/yr
Sources:CFPBNAR

Run the calculator when you are ready.

Compare Options

Rent vs Buy Calculator

Compare renting vs buying • Break-even • Net cost

Sample Scenarios

Home Purchase

Purchase price
$
Cash down
$
Mortgage rate
%

Renting & Timeline

Current rent
$
How long
years
Annual increase
%
rent_vs_buy.sh
CALCULATED
$ analyze --home-price=$500,000 --rent=$2,500
Net Buying Cost
$195,103
Net Renting Cost
$169,296
Recommendation
Rent
Difference
$25,807
Over 7 years, renting results in lower net costs.
Rent vs Buy Calculator
Renting is Better
$25,807
Difference over 7 years
numbervibe.com

Calculation Breakdown

Home Details

Home Price$500,000
Down Payment$100,000
Loan Amount$400,000
Monthly Mortgage$2,528

Buying Costs (7 years)

Mortgage Payments$212,375
Property Tax + Insurance$56,000
Maintenance$35,000
Closing Costs (Buy + Sell)$45,000
Total Buying Cost$448,375
Home Value at End$614,937
Equity at End$253,272
Net Buying Cost$195,103

Renting Costs (7 years)

Total Rent Paid$229,874
Investment Value$160,578
Net Renting Cost$169,296

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For educational and informational purposes only. Verify with a qualified professional.

💡 Money Facts

5+

yr buy wins

— Typical

1-2%

Maintenance/yr

— Rule

1. Key Takeaways

  • • Time horizon crucial - buy wins after 5+ years
  • • Hidden costs: maintenance, taxes, insurance
  • • Opportunity cost of down payment
  • • Non-financial factors matter

2. Key Factors

Favors Buying

  • • 5+ year stay
  • • Stable income
  • • Strong market

Favors Renting

  • • Moving in 3-5 yr
  • • Uncertain job
  • • Invest savings well

3. How It Works

Compare: Buy total cost - equity vs Rent total + investment growth.

4. Expert Tips

5+ years

Buy usually wins

Maintenance

1-2% home value/yr

5. Break-Even Reference

MarketTypical Break-Even
Strong appreciation3-5 years
Flat/declining5-7+ years

6. FAQ

Rent or buy? Depends on stay length, market, lifestyle.
Opportunity cost? Down payment could be invested.

7. Quick Stats

5+

yr buy often wins

1-2%

maintenance/yr

8. Sources

CFPB rent vs buy; NAR market data.

9. Disclaimer

Estimates only. Results depend on many factors.

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