Rent vs Buy
Compare ownership equity, renter investments, monthly costs, and break-even timing.
Renting advantage$3,614
Inputs
Buying, renting, growth, and investment assumptions.
Buying
Down payment
Rate default: FRED MORTGAGE30US - 2026-08-13Tax default: Hamilton County TN ACS effective-rate estimate - acs2024_5yr
Ownership Costs
Rent and Growth
Results
Renting is ahead by $3,614 after 7 years.
Renting advantage$3,6147 year comparison
Owner net worth$131,101Equity after sale costs
Renter net worth$134,715Invested cash differences
Break-evenNot in windowWhen buying first pulls ahead
Cash Flow
Upfront cash to buy$52,000.00
First-month owner cost$3,220.84
First-month rent cost$2,425.00
Total owner outflow$328,581.33
Total renter outflow$225,797.05
Net Worth
Ending home value$491,949.55
Ending loan balance-$326,411.69
Estimated selling costs-$34,436.47
Owner net worth$131,101
Renter net worth$134,715
Year by Year
$360,000 starting loan amount.| Year | Home value | Owner net worth | Renter net worth | Buy edge |
|---|---|---|---|---|
| 1 | $412,000 | $27,056 | $64,077 | -$37,021 |
| 2 | $424,360 | $42,714 | $76,106 | -$33,392 |
| 3 | $437,091 | $59,004 | $88,066 | -$29,062 |
| 4 | $450,204 | $75,955 | $99,934 | -$23,979 |
| 5 | $463,710 | $93,599 | $111,683 | -$18,084 |
| 6 | $477,621 | $111,969 | $123,286 | -$11,317 |
| 7 | $491,950 | $131,101 | $134,715 | -$3,614 |
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.