TrueAffordRent vs. Buy Calculator
Is buying actually better than renting here — or does it just feel that way?
Comparing a mortgage payment to rent misses the point. This runs a month-by-month simulation of both paths as net worth over time — home equity and appreciation on one side, what your down payment would earn invested on the other — so you can see when, if ever, buying actually pulls ahead.
At 7 years
Buying comes out ahead by$62,668
Buying overtakes renting in net worth around year 2.
Buying net worth at year 7
$135,681
Renting net worth at year 7
$73,012
Assumes 3% annual home appreciation, 6% investment return on the money not spent buying, 3% annual rent growth, and 6% selling costs. See the methodology for the full model.
Frequently asked questions
Why net worth instead of monthly payment?
A lower monthly payment doesn't mean a better financial outcome. Renting frees up the cash that would've gone to a down payment to be invested elsewhere, while buying builds equity as the loan amortizes and the home appreciates. Net worth captures both sides; a payment comparison captures neither.
What happens if I move before the breakeven year?
Selling costs — assumed at 6% of sale price for agent commission and closing — eat into home equity right away, which is why buying often loses to renting over short tenures even when the monthly payment is similar. The chart shows exactly when, if ever, that flips for your numbers.
What return does the model assume on invested cash?
6% annually by default on the money a renter isn't putting into a down payment or paying beyond their monthly rent. That's a real assumption, not a certainty — a lower or higher realistic return for your own situation will shift the breakeven year meaningfully.
Related: Mortgage calculator · Rent affordability calculator · Methodology