Home & Car
Rent vs Buy
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Over your time frame
Renting comes out about $133,178 ahead
Stay longer and buying usually catches up. Assumes 4% home growth and a 7% return on invested cash.
If You Rent
Total rent paid$398,074
Investments at the end$618,321
Ending net worth$618,321
If You Buy
Cash to buy (down + closing)$218,500
Payments over 7 yrs$599,716
Home value at end$1,250,135
Loan still owed$689,985
Net if you sell$485,142
Ending net worth$485,142
The Bottom Line
If you rent, ending net worth$618,321
If you buy, ending net worth$485,142
Renting is ahead by$133,178
Break-evenNot within 7 years
The Rule of Thumb
Why it lands here Three levers decide it. Price to rent is about 19 to 1 ($950,000 to buy versus $50,400 a year to rent); much above 18 to 1 tilts toward renting. Your mortgage rate (6.75%) versus home growth (4%): when the rate is higher, most of each early payment is interest, gone just like rent. And the $218,500 a purchase ties up could earn 7% invested instead.
Buying is not just rent you keep As an owner you also pay interest to the bank, property tax, insurance, and upkeep, and none of that builds equity. Buying pulls ahead when you stay longer, when the home appreciates or rents climb faster, when the rate is lower, or when the home is cheaper next to rent. Change any of those above and the verdict moves. A home is a place to live first and an investment second.
Everything on this site is educational. Nothing here is financial, legal, or tax advice, and the calculators produce estimates only. Talk to a licensed professional before making financial decisions. © 2026 Kindred Oak.