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Your analysis

Monthly cost of owning

$0

first month, all-in

Monthly cost of renting

$0

rent + renter's insurance

Buying breaks even

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vs. renting

Net worth if you buy 30 yrs

$0

equity − selling costs + investments

Net worth if you rent 30 yrs

$0

invested savings + deposit

What each path really costs per month

Your average all-in monthly cost if you moved out after each year — purchase and selling costs, everything you pay along the way, and the growth that money could have earned, minus what you get back at the end.

Total cost after 30 years

CostRentBuy
Initial costs ⓘBuy: down payment + closing costs. Rent: security deposit. ——
Recurring costs ⓘEverything paid along the way. Buy: mortgage, taxes, insurance, maintenance, HOA, PMI. Rent: rent + renter's insurance. ——
Opportunity costs ⓘThe investment growth that money could have earned at your investment return rate had it been invested instead of spent on housing. ——
Net proceeds ⓘMoney you get back at the end — it reduces your total cost. Buy: sale price − selling costs − remaining loan. Rent: security deposit returned. ——
Total cost——
In today's dollars (inflation-adjusted)——

Net worth over time

Both paths assume the same income: whoever pays less each month invests the difference at your investment return rate. The buyer's net worth is home equity minus selling costs plus any investments; the renter's is their investment portfolio plus the returned deposit.

Home value, loan balance & equity

The shaded area is your equity — the gap between what the home is worth and what you still owe.

Where your first monthly payment goes

The full cost of owning is more than the mortgage — taxes, insurance, upkeep, HOA and PMI add up.

How your loan gets paid off

Early payments are mostly interest; over time the balance tips toward principal and your equity accelerates.

Amortization schedule (annual)

YearPrincipal paidInterest paidTotal paidEnding balance

Year-by-year breakdown

Annual cash costs for each path, plus how home value, equity and net worth evolve. The highlighted row is the break-even year.

YearBuy cost (yr)Rent cost (yr)Home valueLoan balanceEquityNet worth (buy)Net worth (rent)

How much house can I afford?

A realistic estimate that accounts for your available cash, closing costs, property taxes, insurance — and PMI if your down payment ends up under 20%. Uses the interest rate and loan term from the left panel.

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You can comfortably afford a home priced around

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How this calculator works

Both paths are compared fairly by assuming the same income: each month, whichever option costs less, that person invests the difference at your investment return rate. The renter also invests the buyer's down payment and closing costs from day one. That's why the "opportunity cost" of money matters as much as the sticker price of rent or a mortgage.

Buying costs include the mortgage payment, property taxes, homeowners insurance, maintenance, HOA fees, and PMI (charged only until the loan balance falls to 80% of the purchase price). Taxes, insurance and maintenance grow with the home's value; the mortgage payment stops when the loan is paid off. Renting costs include rent (rising at your chosen rate) and renter's insurance.

Net proceeds are what you get back at the end: for the buyer, the sale price minus selling costs and the remaining loan; for the renter, the security deposit. The break-even year is the first year from which buying stays cheaper than renting for the rest of your stay.

Frequently asked questions

Is it cheaper to rent or buy?
It depends almost entirely on how long you stay, the gap between rent and the all-in cost of owning, and what your savings could earn elsewhere. Short stays nearly always favor renting because 3% buying costs and ~7% selling costs must be recovered before owning pays off. Enter your own numbers above — the break-even marker shows exactly when buying starts to win for your situation.
What is the break-even point?
It's the year when the total cost of buying (including money that could have grown elsewhere) drops below the total cost of renting — and stays below. If you plan to move before the break-even year, renting is usually the better financial choice; after it, buying pulls ahead.
What costs does buying include beyond the mortgage?
Property taxes (~1.1% of value per year on average), homeowners insurance (~0.5%), maintenance and repairs (~1%), possible HOA fees, PMI if you put down less than 20%, closing costs of 2–5% when you buy, and selling costs of 6–8% when you move. These commonly add 50–80% on top of the principal-and-interest payment.
What is opportunity cost and why does it matter?
Every dollar tied up in a down payment or spent on housing is a dollar that couldn't be invested. This calculator credits both paths with the growth their spare cash could have earned at your chosen investment return, so a large down payment isn't treated as "free."
What is PMI and when does it go away?
Private mortgage insurance protects the lender when your down payment is under 20%. It typically costs 0.3–1.2% of the loan balance per year. This model drops PMI automatically once your balance amortizes to 80% of the original purchase price — the summary tells you the estimated year.
How accurate is this?
The math is exact for the assumptions you enter, but the future isn't: home appreciation, rent growth, and investment returns all vary. Try a pessimistic and an optimistic scenario to see how sensitive your answer is. This tool is for education, not financial advice — talk to a professional before making a major decision.