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Rent vs buy calculator
Compare the true cost of renting and owning over the years you plan to stay, including equity and opportunity cost.
Over 7 years, renting comes out ahead by
$1,533
- Buying pulls ahead
- Year 8
- Ownership cost, month one
- $3,482
- Equity when you sell
- $136,179
- Lost growth on cash
- $14,656
- Renting
- Buying
Show as a table
| Sell after | Renting | Buying | Buying saves | Equity |
|---|---|---|---|---|
| Year 1 | $27,000 | $66,264 | -$39,264 | $13,318 |
| Year 2 | $54,945 | $91,624 | -$36,679 | $31,841 |
| Year 3 | $83,868 | $116,559 | -$32,691 | $51,098 |
| Year 4 | $113,803 | $141,046 | -$27,242 | $71,125 |
| Year 5 | $144,787 | $165,061 | -$20,274 | $91,956 |
| Year 6 | $176,854 | $188,580 | -$11,726 | $113,628 |
| Year 7 | $210,044 | $211,577 | -$1,533 | $136,179 |
| Year 8 | $244,396 | $234,024 | $10,372 | $159,652 |
| Year 9 | $279,949 | $255,891 | $24,058 | $184,088 |
| Year 10 | $316,748 | $277,147 | $39,601 | $209,533 |
| Year 11 | $354,834 | $297,581 | $57,253 | $236,035 |
| Year 12 | $394,253 | $315,376 | $78,877 | $263,643 |
| Year 13 | $435,052 | $332,456 | $102,596 | $292,411 |
| Year 14 | $477,279 | $348,780 | $128,499 | $322,395 |
| Year 15 | $520,983 | $364,307 | $156,676 | $353,652 |
Estimates only. Buying includes principal and interest on a 30 year loan, property tax, insurance, maintenance, buying and selling costs, and PMI below 20% down until 78% loan-to-value. The cash you put in is assumed to earn the investment return instead. Sample math for illustration only.
What this calculator counts
For renting, we add up rent with yearly increases. For buying, we add your down payment, buying costs, mortgage payments, taxes, insurance, maintenance and PMI, then subtract the equity you would walk away with after 6% selling costs.
We also count the growth you give up by putting cash into a down payment instead of investments, using a 5% sample return. That keeps the comparison fair.
Why time matters so much
Buying has high upfront and exit costs. Over two or three years, renting usually wins. Around year five, equity and appreciation typically overtake those costs in most Wasatch Front scenarios, though every market and year is different.
Things numbers do not capture
Stability for kids in one school, the freedom to paint a wall or finish a basement, and protection from rent increases all have value. So does the flexibility of renting if a job move is likely.
Know your numbers before you shop
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