Rent vs Buy
Compare ownership equity, renter investments, monthly costs, and break-even timing.
Renting advantage$3,031
Inputs
Buying, renting, growth, and investment assumptions.
Buying
Down payment
Rate default: FRED MORTGAGE30US - 2026-08-20Tax default: Hamilton County TN ACS effective-rate estimate - acs2024_5yr
Ownership Costs
Rent and Growth
Results
Renting is ahead by $3,031 after 7 years.
Renting advantage$3,0317 year comparison
Owner net worth$131,208Equity after sale costs
Renter net worth$134,239Invested cash differences
Break-evenNot in windowWhen buying first pulls ahead
Cash Flow
Upfront cash to buy$52,000.00
First-month owner cost$3,216.07
First-month rent cost$2,425.00
Total owner outflow$328,180.83
Total renter outflow$225,797.05
Net Worth
Ending home value$491,949.55
Ending loan balance-$326,305.24
Estimated selling costs-$34,436.47
Owner net worth$131,208
Renter net worth$134,239
Year by Year
$360,000 starting loan amount.| Year | Home value | Owner net worth | Renter net worth | Buy edge |
|---|---|---|---|---|
| 1 | $412,000 | $27,071 | $64,018 | -$36,948 |
| 2 | $424,360 | $42,744 | $75,986 | -$33,242 |
| 3 | $437,091 | $59,049 | $87,882 | -$28,833 |
| 4 | $450,204 | $76,015 | $99,681 | -$23,666 |
| 5 | $463,710 | $93,675 | $111,359 | -$17,685 |
| 6 | $477,621 | $112,060 | $122,888 | -$10,828 |
| 7 | $491,950 | $131,208 | $134,239 | -$3,031 |
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.