Renting costs something too.
Put the rent beside the mortgage, the deposit beside the down payment, and the years you plan to stay beside both.
Start with the rent you pay now.
Set what renting costs you today and what the house you want would cost. The rest are assumptions you can open and change.
Renting comes out ahead over the years you plan to stay.
$6,075
Less than buying, over that stay
- Renting
- $2,809
- Buying
- $2,881
Buying pulls ahead in year 8.
An estimate built from what you entered — not a quote, an approval, or advice.
Change the return, the appreciation or the years you stay and this answer can flip. It is worth trying a few.
Talk this through with someone- Buying does catch up here — just later than you plan to stay. Try the stay length against it.
- This writes off mortgage interest and property tax. Most filers take the standard deduction instead.
Where the difference actually comes from.
The same comparison three ways: what each path is made of, how the two run over time, and the figures year by year.
| Cost category | Renting | Buying | Difference |
|---|---|---|---|
| Initial costs Paid once, on the way in — the deposit and broker fee, or the down payment and closing costs. | $2,400 | $124,000 | −$121,600 |
| Recurring costs Everything paid month by month, added up from the first year to this one. | $226,707 | $246,570 | −$19,862 |
| Opportunity costs What the same money would have earned invested instead, after tax on the gains. | $55,054 | $125,597 | −$70,543 |
| Net proceeds What comes back at the end — the deposit, or the sale less selling costs and the loan. | $2,400 | $207,152 | +$204,752 |
| Total cost Every total is in today’s dollars, discounted by the inflation rate you set. | $235,970 | $242,045 | −$6,075 |
| Cost per month | $2,809 | $2,881 | −$72 |
- Renting
- Buying
Year 7 · Renting $235,970 · Buying $242,045
| Year | Renting | Buying | Difference |
|---|---|---|---|
| Year 1 | $31,598 | $86,020 | −$54,422 |
| Year 2 | $63,826 | $109,563 | −$45,737 |
| Year 3 | $96,727 | $134,023 | −$37,296 |
| Year 4 | $130,346 | $159,449 | −$29,103 |
| Year 5 | $164,727 | $185,892 | −$21,165 |
| Year 6 | $199,919 | $213,406 | −$13,487 |
| Year 7 your stay | $235,970 | $242,045 | −$6,075 |
| Year 8 buying pulls ahead | $272,931 | $271,865 | +$1,066 |
| Year 9 | $310,853 | $302,926 | +$7,928 |
| Year 10 | $349,791 | $335,287 | +$14,504 |
| Year 11 | $389,798 | $369,011 | +$20,788 |
| Year 12 | $430,934 | $404,163 | +$26,772 |
| Year 13 | $473,257 | $440,810 | +$32,447 |
| Year 14 | $516,829 | $479,022 | +$37,806 |
| Year 15 | $561,713 | $518,872 | +$42,841 |
| Year 16 | $607,975 | $560,434 | +$47,540 |
| Year 17 | $655,682 | $603,787 | +$51,895 |
| Year 18 | $704,907 | $649,011 | +$55,896 |
| Year 19 | $755,722 | $696,190 | +$59,532 |
| Year 20 | $808,203 | $745,413 | +$62,791 |
| Year 21 | $862,429 | $796,768 | +$65,661 |
| Year 22 | $918,481 | $850,351 | +$68,130 |
| Year 23 | $976,444 | $906,261 | +$70,184 |
| Year 24 | $1,036,407 | $964,598 | +$71,809 |
| Year 25 | $1,098,460 | $1,025,469 | +$72,991 |
| Year 26 | $1,162,699 | $1,088,984 | +$73,715 |
| Year 27 | $1,229,222 | $1,155,259 | +$73,963 |
| Year 28 | $1,298,130 | $1,224,412 | +$73,718 |
| Year 29 | $1,369,531 | $1,296,568 | +$72,963 |
| Year 30 | $1,443,535 | $1,371,856 | +$71,679 |
The math narrows it. A person decides it.
Whether owning beats renting depends on the loan you can actually get. A loan officer can tell you what that is before you commit.
Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.