Rent vs Buy Analysis
Rent vs Buy Cost Over Time
| Year | Rent Total | Buy Total Cost | Buy Net Worth | Difference (Buy - Rent) |
|---|
Break-even = when Buy Net Worth > Rent Total
Rent vs Buy Calculator 2025: Break-Even Year, 30-Year Cost, Mortgage vs Rent
Should you rent or buy in 2025? Our rent vs buy calculator compares mortgage, taxes, appreciation, and rent increases — showing break-even year and total wealth.
Homeownership isn’t always better.
Rent vs Buy: Key Factors
- Mortgage: Principal + interest
- Taxes & Insurance: 1–2% of home value
- Appreciation: 3–5% annually
- Rent: Increases 2–4%/year
- Opportunity Cost: Down payment in stocks?
How the Calculator Works
- Enter home price, down payment, rates
- Add taxes, insurance, HOA, maintenance
- Set rent, increases, appreciation
- See break-even year and 30-year net worth
Real-World Examples
Example 1: $500K Home, $2,500 Rent
20% down, 6.5% rate, 4% appreciation
Break-even: Year 6
After 30 years: Buy = +$1.2M net worth vs Rent = -$900K
Example 2: $800K Home, $3,500 Rent
High taxes, low appreciation
Break-even: Year 12
Rent wins first 10 years
2025 Housing Benchmarks
| Metric | Avg Value | Impact |
|---|---|---|
| Home Price | $450K | Up 5% |
| Mortgage Rate | 6.8% | Down from 8% |
| Rent Growth | 3.5%/yr | High demand |
| Appreciation | 4.2%/yr | Moderate |
Break-Even Formula
Break-even = Year when (Home Value - Remaining Loan) > Total Rent Paid
2025 Housing Trends
- AI Home Valuations: Instant Zestimate
- Tokenized Real Estate: Buy fractions
- Remote Work: Suburbs booming
- Green Mortgages: Lower rates for energy-efficient
When to Rent
- Job mobility
- High interest rates
- Short stay (<5 years)
- Invest down payment elsewhere
When to Buy
- Long-term (7+ years)
- Stable income
- Low rates
- Tax deductions
Hidden Costs of Buying
- Closing costs: 2–5%
- Repairs: $5K–10K/year
- PMI if <20% down
- Selling fees: 6%
Integrate with Other Tools
- Home Budget Analyzer — Affordability
- Personal Loan Affordability — Down payment
- Net Worth — Track equity
Sample 30-Year Comparison ($600K Home)
| Year | Rent Total | Buy Cost | Equity | Net (Buy) |
|---|---|---|---|---|
| 5 | $165K | $210K | $150K | -$60K |
| 10 | $350K | $400K | $380K | +$30K |
| 20 | $780K | $720K | $1.1M | +$400K |
| 30 | $1.3M | $1.0M | $2.1M | +$1.1M |
Conclusion: Run the Numbers
Use the rent vs buy calculator before deciding. Location, timing, and rates matter.
In 2025, data beats emotion.
Not financial advice. Consult advisor.
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