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Rent vs Buy Calculator
A highly advanced opportunity cost engine. Compares the total sunk costs and equity gains of buying a home against renting, finding the exact year you break even.
Opportunity Cost Variables
Home Purchase
Home Rent
Your Information
Buying is cheaper if you stay for 7.2 years or longer. Otherwise, renting is cheaper.
Average Monthly Cost Over TimeOpportunity Cost
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Opportunity Cost Schedule
| Year | Buy Avg Cost | Rent Avg Cost | Buy Net Worth | Rent Net Worth |
|---|---|---|---|---|
| Year 1 | $6,102 | $2,676 | $83,464 | $124,572 |
| Year 2 | $4,220 | $2,695 | $102,647 | $139,240 |
| Year 3 | $3,587 | $2,717 | $122,581 | $153,890 |
| Year 4 | $3,266 | $2,741 | $143,299 | $168,508 |
| Year 5 | $3,070 | $2,766 | $164,839 | $183,079 |
| Year 6 | $2,937 | $2,793 | $187,238 | $197,585 |
| Year 7 | $2,838 | $2,820 | $210,535 | $212,011 |
| Year 8 | $2,761 | $2,849 | $234,773 | $226,338 |
| Year 9 | $2,699 | $2,879 | $259,996 | $240,547 |
| Year 10 | $2,646 | $2,910 | $286,252 | $254,619 |
| Year 11 | $2,601 | $2,942 | $313,588 | $268,554 |
| Year 12 | $2,561 | $2,975 | $342,057 | $282,388 |
| Year 13 | $2,525 | $3,010 | $371,714 | $296,103 |
| Year 14 | $2,493 | $3,046 | $402,616 | $309,683 |
| Year 15 | $2,462 | $3,083 | $434,825 | $323,065 |
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Complete Guide
Mastering the Rent vs Buy Calculation
Welcome to the most mathematically rigorous Rent vs Buy Calculator available online. The decision to purchase a home versus continuing to rent is arguably the most significant financial crossroad most individuals face. For decades, conventional wisdom stated that "renting is throwing money away" and "buying a home is the best investment you can make." However, in modern economic environments with fluctuating interest rates, skyrocketing home prices, and significant maintenance costs, the truth is far more complex.
This tool moves far beyond a simple comparison of a monthly mortgage payment versus a monthly rent check. It executes a comprehensive opportunity cost analysis. It calculates the massive sunk costs of buying (closing fees, property taxes, unrecoverable interest) and compares them against the sunk costs of renting, all while mathematically simulating what happens if you take the money you saved by renting and invest it in the stock market.
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Frequently Asked
Questions & Answers
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