Rent vs. Buy Calculator
Compare the true cumulative net cost of renting versus owning your home across any time horizon. Discover your exact break-even point, and see how annual rent inflation compares to long-term home equity growth.
In Year 7, Buying Saves You $74,119 Over Renting
By locking in your mortgage at 6.375%, you build equity every month while escaping annual rent increases of 3%/yr.
When renting, your landlord keeps 100% of your monthly payment. By owning a $425,000 home at ~5% annual value growth (~5% appreciation), your home is projected to be worth $598,018 in 7 years—giving you powerful net worth expansion.
| Horizon | Total Rent Paid | Net Cost of Buying | Net Wealth Advantage |
|---|---|---|---|
| Year 1 | $22,200 | $47,131 | -$24,931 |
| Year 3 | $68,618 | $69,416 | -$798 |
| Year 5 | $117,863 | $85,914 | +$31,949 |
| Year 7 👈 | $170,107 | $95,988 | +$74,119 |
| Year 10 | $254,498 | $97,475 | +$157,023 |
| Year 15 | $412,896 | $56,568 | +$356,328 |
| Year 30 | $1,056,174 | $0 | +$1,621,245 |
All calculations, payment projections, and rate scenarios provided by this tool are hypothetical and intended solely for educational guidelines and preliminary budgeting. These figures do not constitute a formal Loan Estimate, quote, pre-approval, commitment to lend, or rate lock guarantee pursuant to the Truth in Lending Act (TILA), the Real Estate Settlement Procedures Act (RESPA), or equal credit opportunity regulations.
Actual loan qualification, annual percentage rates (APRs), down payment requirements, property tax assessments, homeowners insurance premiums, and private mortgage insurance (PMI) are determined exclusively through a formal underwriting evaluation of your verified credit, income, assets, and specific property valuation. For verified financing terms tailored to your exact scenario, please schedule a strategy session with the Rob Miller team.
Why Rent Inflation is the Invisible Tax
When you rent a home or apartment, your monthly housing payment is 100% expense. Furthermore, historical data shows rental rates increase by an average of 3% to 5% annually. Over a 7-year period, a $1,850/mo lease escalating at 3%/year will cost you over $168,000 in sunk payments without building a single dollar of equity.
Conversely, locking in a fixed-rate mortgage protects your principal and interest payment from inflation for up to 30 years. Even when accounting for local property taxes and insurance, a portion of every mortgage payment goes directly into your own pocket by paying down your loan balance—while historical market appreciation multiplies your initial down payment into long-term family wealth.
Tired of Paying Rent? Let's Run Your Real Numbers.
See exactly what you could buy with your current monthly rent payment. We'll show you custom options starting at $0 or 3% down.
Compare My Rent vs. Owning