Rent vs. Buy
Compare the true cost of renting vs. buying over time
Home Purchase
$
%
$160,000
%
%
Ownership Costs
%/yr
$/yr
$/mo
%/yr
Renting
$
%/yr
Assumptions
%/yr
%/yr
Over 30 years
Buying costs less overall
$1,849
Breakeven at year 10 — buying becomes cheaper on a per-month basis after that point.
Effective Monthly Cost
Lower = better · total cost minus equity and investment gains, averaged per month
Buying — Month 1
Principal & Interest$4,151
Property Tax$800
Insurance$167
HOA$400
Maintenance$667
Total Monthly$6,184
Down payment$160,000
Closing costs$24,000
After 30 Years
If you buy
Home Value$2,594,718
Home Equity$2,594,718
Net Cost$763
If you rent
Down payment invested at 7%$1,217,961
Net Cost$2,612