Rent vs Buy
Compare ownership equity, renter investments, monthly costs, and break-even timing.
Renting advantage$24,982
Inputs
Buying, renting, growth, and investment assumptions.
Buying
Down payment
Rate default: FRED MORTGAGE30US - 2026-10-08Tax default: Hamilton County TN ACS effective-rate estimate - acs2024_5yr
Ownership Costs
Rent and Growth
Results
Renting is ahead by $24,982 after 7 years.
Renting advantage$24,9827 year comparison
Owner net worth$127,392Equity after sale costs
Renter net worth$152,374Invested cash differences
Break-evenNot in windowWhen buying first pulls ahead
Cash Flow
Upfront cash to buy$52,000.00
First-month owner cost$3,397.57
First-month rent cost$2,425.00
Total owner outflow$343,426.31
Total renter outflow$225,797.05
Net Worth
Ending home value$491,949.55
Ending loan balance-$330,120.78
Estimated selling costs-$34,436.47
Owner net worth$127,392
Renter net worth$152,374
Year by Year
$360,000 starting loan amount.| Year | Home value | Owner net worth | Renter net worth | Buy edge |
|---|---|---|---|---|
| 1 | $412,000 | $26,544 | $66,246 | -$39,702 |
| 2 | $424,360 | $41,682 | $80,552 | -$38,870 |
| 3 | $437,091 | $57,444 | $94,904 | -$37,460 |
| 4 | $450,204 | $73,861 | $109,282 | -$35,421 |
| 5 | $463,710 | $90,967 | $123,667 | -$32,700 |
| 6 | $477,621 | $108,798 | $138,039 | -$29,241 |
| 7 | $491,950 | $127,392 | $152,374 | -$24,982 |
Estimates only. Rent vs buy outcomes are highly sensitive to appreciation, rent growth, selling costs, repairs, taxes, insurance, investment returns, loan terms, and how long you stay in the home.