Rent vs. Buy Decision & Equity Calculator
Analyze the financial breakeven horizon, compare net wealth accumulation, and evaluate monthly cash flow tradeoffs
Current rental rate for similar home
30-Year fixed rate
Financial Verdict (At Selected Horizon)
Buying Wins by $64,280
Breakeven Point: 4 Years
Buyer Net Worth (Equity – Sale Fees)
$286,410
Projected Home: $629,105
Renter Net Worth (Invested Capital)
$222,130
From down payment + cash savings
Total Sunk Costs (Buying)
$234,890
Interest, taxes, ins., maintenance
Total Sunk Costs (Renting)
$337,840
100% of cumulative rent paid
National median ~1.1%
1% rule for roof, HVAC & repairs
Year 1 Monthly Outflow Difference
Buyer Pays $794 / mo More
Renter saves and invests this monthly difference
Buyer Total Monthly Outflow
$3,214 / mo
P&I: $2,149 • Taxes & Fees: $1,065
Renter Total Monthly Outflow
$2,420 / mo
Rent + Renter’s Insurance
Principal Building (Year 1 Avg)
$312 / mo
Forced savings building net equity
Initial Upfront Cash (At Closing)
$97,750
20% Down ($85k) + 3% Closing ($12.8k)
Historical US average ~3.8% – 4.5%
Long-term compound rent escalation
Index fund / opportunity cost return
Loan origination, title, appraisal
Realtor commissions & transfer tax
Core Economic Modifiers Active
7.0% Stocks vs 4.0% Real Estate
Opportunity cost engine compounding monthly
Buyer Closing Cost Paid
$12,750
Sunk immediately at purchase
Seller Fees at Exit (Yr 10)
$37,746
6.0% broker commission on exit
Year 10 Monthly Rent
$3,386 / mo
Escalated at 3.5% per annum
Buyer Fixed P&I Payment
$2,149 / mo
Remains locked for 30 years