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Rent vs. Buy
Is it better to keep renting and invest, or buy now? This compares your wealth in each case, year by year, and shows when buying pulls ahead.
How this calculator works
The buyer pays the down payment, 2% buying costs, the mortgage, property tax, insurance, maintenance and HOA, and builds equity as the home appreciates. Selling costs of 6% are subtracted at the end.
The renter invests what the buyer would have spent upfront. Each month, whoever pays less invests the difference at the same return.
Break-even is the first year the buyer's wealth passes the renter's. In high-price markets like the Bay Area, it often takes 5 to 10 years.
Tax benefits of owning (mortgage interest deduction, capital gains exclusion) aren't included, so the real picture often favors buying a bit more.