Tools · Run the numbers
Rent vs. buy
The honest version — net cost of each over how long you'll stay, including what your down payment could earn elsewhere.
Renting isn't throwing money away and buying isn't always cheaper — it depends on how long you stay and what your down payment could earn elsewhere. This compares the net cost of each over your horizon.
Over 7 years
Renting wins
by about $26,470 net
Directional only. The model includes estimated conventional PMI below 20% down, maintenance scaled to the home's value, and investing the monthly cash-flow difference on whichever side is cheaper that year. Property taxes, homeowners insurance, and HOA dues grow at the appreciation rate each year. PMI is assumed to drop when the loan is paid down to 80% of the original price; removal based on a higher appraised value usually requires a new appraisal or a refinance, so it isn't modeled. Still not modeled: tax effects (mortgage-interest deduction, capital-gains exclusion) and renter's insurance and deposits. Appreciation and investment returns are assumptions you set.
Estimates only — not a quote, pre-approval, or offer of credit. Your actual terms come from a lender's Loan Estimate. This is a directional model — small changes to appreciation, returns, or how long you stay can flip the result.
Terms on this page
- EquityThe part of the home you own — its value minus what you still owe.
- Closing costsOne-time fees to finalize the loan and purchase — lender fees, title, taxes, prepaids — usually a few percent of the price.
- Private mortgage insurance (PMI)Insurance on a conventional loan when you put less than 20% down; cancellable as you build equity.
- AppreciationThe increase in a home's value over time; the rate you assume drives any rent-vs-buy comparison.
- Opportunity costWhat money could have earned elsewhere — the return a renter's would-be down payment makes if invested instead.
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