Rent vs Buy Calculator
After 10 years, buying leaves you ahead by $58,387 under these assumptions.
After 10 years, buying is ahead by
$58,387
Over 10 years, assuming 3.0% home appreciation, 3.0% rent growth and a 5.0% return on invested cash.
This answer is only as good as its assumptions
Change the horizon, the appreciation rate or the investment return and this result can reverse entirely. It is a framework for thinking, not a verdict. Under these assumptions, buying pulls ahead in year 7.- Monthly mortgage payment
- $3,538.67
- Home value at the end
- $1,075,133
- Your equity at the end
- $610,965
- Renter's portfolio at the end
- $498,820
| Year | Owner net worth | Renter net worth | Difference |
|---|---|---|---|
| 1 | $157,082 | $214,414 | −$57,332 |
| 2 | $195,497 | $244,291 | −$48,794 |
| 3 | $235,294 | $274,623 | −$39,330 |
| 4 | $276,525 | $305,403 | −$28,878 |
| 5 | $319,244 | $336,620 | −$17,375 |
| 6 | $363,508 | $368,263 | −$4,755 |
| 7 | $409,375 | $400,320 | +$9,055 |
| 8 | $456,905 | $432,777 | +$24,128 |
| 9 | $506,161 | $465,616 | +$40,545 |
| 10 | $557,208 | $498,820 | +$58,387 |
This model ignores taxes on investment returns, the principal residence exemption on your home, and the value of flexibility or stability. Those matter and cannot be reduced to a number. Clover Mortgage Inc. is a licensed mortgage brokerage. This calculator provides estimates for information only and is not an offer of credit, an approval, or financial advice.
Every mortgage is different. A Clover Mortgage broker can confirm what you actually qualify for across more than 50 lenders — at no cost to you.
Buying is ahead by
$58,387
Common questions
- Why does the answer change so much?
- Because it depends almost entirely on assumptions — how long you stay, how fast prices grow, and what a renter earns on invested cash. Change the horizon or the appreciation rate and the answer can flip. That is why every assumption here is editable and visible.