Rent vs Buy Calculator (USA)
The honest version: the buyer builds home equity; the renter invests the down payment and every monthly dollar saved. Who's wealthier at the end?
Verdict After the Horizon
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Buyer's Net Worth (home equity)$0
Renter's Net Worth (investments)$0
Home Value at Horizon$0
Mortgage Still Owed$0
Monthly Mortgage Payment (P&I)$0
Simulation uses a 30-year mortgage; the owner also pays 1.2% property tax + 1% maintenance/insurance of home value yearly, while the renter invests the down payment plus any monthly difference. Excluded: ~6% selling costs when the owner exits (hurts buying on short horizons) and the mortgage-interest deduction (helps some itemizers). The shorter your stay, the more renting wins — five years is the classic break-even zone. Estimates only.