Rent or buy? Run your numbers.
The honest version of the question: after the years you'd actually stay, which choice leaves you wealthier — owning the home, or renting and investing the difference?
After 8 years, renting leaves you ahead by
$6,655
Buying doesn't catch up with renting within 8 years under these assumptions.
- Upfront cash to buy
- $72,000
- Monthly principal & interest
- $2,149
Educational estimate only — real markets don't grow at constant rates, and tax effects are excluded. Not lending, tax, or investment advice.
| Year | Owner costs | Rent | Owner equity (net) | Renter portfolio | Buying is ahead by |
|---|---|---|---|---|---|
| 1 | $36,552 | $26,400 | $44,680 | $85,752 | −$41,072 |
| 2 | $36,929 | $27,192 | $62,066 | $99,777 | −$37,711 |
| 3 | $37,319 | $28,008 | $80,190 | $114,077 | −$33,888 |
| 4 | $37,723 | $28,848 | $99,086 | $128,656 | −$29,570 |
| 5 | $38,140 | $29,713 | $118,791 | $143,515 | −$24,724 |
| 6 | $38,573 | $30,605 | $139,344 | $158,659 | −$19,315 |
| 7 | $39,020 | $31,523 | $160,784 | $174,089 | −$13,305 |
| 8 | $39,483 | $32,469 | $183,153 | $189,808 | −$6,655 |
How to think about the answer
It's a wealth question
Rent isn't "throwing money away" and buying isn't automatically winning. The fair comparison: after N years, who's worth more — the owner with home equity, or the renter who invested the difference?
Time is the biggest input
Buying has big one-time costs at both ends — closing costs going in, selling costs going out. The longer you stay, the more years those costs get spread over. Short stays usually favor renting.
Assumptions decide the answer
Nobody knows future home prices, rents, or market returns. That's why every assumption here is editable, and why we show how the answer moves if home prices grow one point slower or faster.
Leaning toward buying? Check what price fits your budget and the full monthly payment.