Rent vs Buy Flow
Compare renting versus buying based on your real monthly numbers and timeline.
Get a monthly cost gap and break-even view before committing.
Why this flow matters
"Renting is throwing money away" is a slogan, not math. Owning has hidden costs (taxes, repairs, opportunity cost on the down payment) that often make renting financially better below a certain stay length. This flow gives you the actual break-even year.
Your diagnosis
Break-even (12.6 yrs) > stay (7 yrs) - rent.
- NowDo not buy at this price + rate combo
Selling costs (5-7%) erase any near-term equity.
- SoonBudget for $597/mo extra ownership cost
- LaterHold 3-6 months of PITI in cash post-closing - lenders do not check this for you
Your inputs
Edit any value - the diagnosis above updates instantly.
How the math works
The exact rules and formulas this flow applies - no black box.
- 1.Monthly mortgage component uses the standard amortization formula on principal = price - down payment.
- 2.Total ownership = mortgage + ownership extras (taxes, insurance, maintenance, HOA).
- 3.Break-even years = down payment / (annual difference between owning and renting).
- 4.Capped at 2x your expected stay length - beyond that the comparison is no longer meaningful.
How to read your result
- Break-even < your expected stay: buying tends to win on cash flow alone (excluding appreciation).
- Break-even > expected stay: renting wins. Selling costs (5-7%) will erase any near-term equity.
- Monthly gap (own - rent) under $200: cash flow is similar, decision is lifestyle and risk.
Common questions
Does this include home appreciation?
No, by design. Appreciation is uncertain and varies wildly by city. The flow gives you the cash-flow truth without speculative upside.
What about tax deductions?
Mortgage interest deduction matters less since the 2017 standard deduction increase. Most buyers do not itemize anymore.
When does buying clearly win?
Stable career, plan to stay 7+ years, strong income, and a down payment that does not drain emergency cash.