Model rent growth, a fixed-rate mortgage, owner costs (taxes, insurance, maintenance, HOA), and a simple sale at the end of your comparison window. Opportunity cost on the down payment and detailed tax treatment are not modeled—use this to stress-test assumptions, not as a purchase decision by itself.
Compare renting (with invested down payment + closing) to buying (equity buildup and sale at the end). Optional investment return compounds the renter's starting balance monthly.
Buy vs rent (net at horizon): -$53,608 (Favors renting at the end of the horizon).
Monthly cost comparison: first month rent $2,825 vs buy $7,448 · average rent $2,825 vs buy $7,533.
Break-even: Month 2 (~year 1) — estimated home equity vs. renter invested balance cross.
Educational model: income taxes, itemized deductions, moving costs, PMI, and refis are not included. Renter cash flow assumes housing is paid from the invested down-payment + closing pool.
Rent: cumulative rent + insurance. Buy: down, closing, and all monthly owner costs through the horizon.
Blue: home equity. Green: renter invested balance. Orange reference: first month buy equity crosses renter balance (if any).
Common Questions