The Money Friend

Rent vs Buy Analyzer

Side-by-side NPV comparison with adjustable time horizon. Shows breakeven year. Accounts for investment opportunity cost of down payment.

Rent vs Buy Analyzer

Should you keep renting, or is it time to buy?

$
$50,000$10,000,000
$
$0$10,000

Your current monthly rent payment

$
$0$1,000,000

Renting saves you $54,417 over 10 years — buying would be a stretch

Here's the thing

The math strongly favors renting right now. Your $80,000 invested at 7% would grow to $160,773, far outpacing the $266,283 in home equity you'd build. Unless you have a strong personal reason to buy, your money works harder in the market at these prices.

Breakeven year

Not within 10 years

Buying never catches up to renting in this time frame

Net cost of buying

$168,777

Total cash out minus home equity built

Net cost of renting

$114,360

Total rent paid minus investment growth on your down payment

Renting saves you

$54,417

Home equity at end

$266,283

Home value after 3% annual appreciation minus remaining mortgage

Investment value (if renting)

$160,773

Down payment invested at 7% annual return

Avg monthly buy cost

$2,959

Average across all years including mortgage, tax, insurance, maintenance

Monthly rent in year 10

$2,610

After 3% annual increases

The Money Friend

Renting saves you $54,417 over 10 years — buying would be a stretch

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This calculator provides estimates for informational purposes only and does not constitute financial advice. Actual costs may vary based on your creditworthiness, location, and lender. Consult a licensed financial advisor or mortgage professional before making financial decisions.

Interest rates, payments, and loan terms shown are examples for illustration purposes only and do not represent an offer to lend, a commitment to make a loan, or a guarantee of any specific rate or term. Actual rates and terms are determined by lenders based on your individual credit profile and may differ from examples shown.

Past performance and historical data do not guarantee future results. Equal Housing Opportunity.

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