Rent vs. Buy Analyzer
The true long-term economics of renting vs. buying, including the selling costs that most online calculators quietly ignore.
Renting
$
%
Buying
$
$
%
yrs
% of value/yr
$
$
% of value
% of price
% of sale price
Market & Assumptions
%
%
%
⚠️ Selling costs: $53,295 (9% of sale price). Agent commissions and closing fees are the most overlooked variable in rent vs. buy analysis. At 8–10% of home value, they can erase years of equity building and make “buying is always better” a much weaker argument.
Buy: Net Worth at Year 7
$212,039
home equity after selling
Rent: Net Worth at Year 7
$307,848
invested down payment + savings
Monthly Cost of Buying
$3,514
P&I + tax + insurance + HOA + maintenance
Upfront Buying Cost
$103,500
down payment + closing costs
7-Year Financial Summary
Buying
Upfront cost
$103,500
Total paid over period
$413,439
Home value at sale
$592,169
Selling costs
$53,295
Equity at sale
$212,039
Net cost (paid - equity)
$201,400
Renting
Upfront cost
$0
Total rent paid
$202,289
Down payment invested
$307,848
Selling costs
$0
Portfolio value
$307,848
Net cost (rent - portfolio)
-$2,059
Sensitivity: How the Answer Changes by Years in Home
| Years in Home | Buy Net Worth | Rent Net Worth | Winner | Difference |
|---|---|---|---|---|
| 3 yrs | $112,962 | $180,785 | Rent | -$67,823 |
| 5 yrs | $160,267 | $240,487 | Rent | -$80,220 |
| 7 yrs | $212,039 | $307,848 | Rent | -$95,809 |
| 10 yrs | $299,076 | $425,751 | Rent | -$126,675 |
| 15 yrs | $473,623 | $679,043 | Rent | -$205,420 |