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Buying costs: mortgage interest, property tax, insurance, maintenance (1–2%/year), and transaction costs (~8–10% to buy and sell). Benefits: equity build-up and appreciation. Renting costs: rent, renter's insurance, and foregone down payment return. The 'price-to-rent ratio' (home price / annual rent) above 20 often favors renting. Time horizon is critical: buying rarely wins under 5 years.
Rough, educational comparison: rent = all rent paid (with annual increases). Buynet cost = cash out (down + P&I + tax/ins/maint) minus estimated sale proceeds after paying the loan and selling costs. Not tax or opportunity-cost adjusted.
After ~7 years
Buy net = cash spent (down + payments + carrying costs) minus estimated cash if you sold (after loan payoff & sell fees). Lower is better in this crude model.
P&I $3,331/mo · End home value $762,522 · Loan left $476,494