US Rent vs. Buy Calculator (30-Year Wealth Engine)
Comprehensive 30-year simulation comparing homeownership equity against renting and investing down payment capital in index funds.
Comprehensive 30-year simulation comparing homeownership equity against renting and investing down payment capital in index funds.
Comprehensive 30-year simulation comparing homeownership equity against renting and investing down payment capital in index funds. Calculate exact, penny-accurate projections compliant with 2026 IRS • St. Louis FED (FRED) standards using Calconova's deterministic IEEE-754 (Decimal.js) calculation engine with instant breakdowns.
If you plan to stay in the home for longer than 11 years, buying generates superior cumulative net wealth. If your horizon is under 11 years, renting and investing preserves more capital.
Net Worth_{Buyer} = [Home Value \times (1 - C_{sell})] - Balance_{mortgage}Net proceeds if the owner liquidates their home after deducting agent commissions, title fees, and loan payoff versus compounding alternative renter portfolio capital.
Pre-calculated benchmark tables across different budgets, terms, and rate models.
All calculations, amortizations, and scenario projections displayed on this page are strictly for informational and educational purposes. Nothing herein constitutes investment, financial, tax, underwriting, or legal advice. Actual interest rates, closing costs, lender fees, and statutory criteria may vary. Calconova explicitly disclaims all liability for any financial decisions or actions taken based upon these calculations. Users are strongly advised to consult a certified financial planner, CPA, or licensed lending officer prior to executing financial commitments.
The breakeven year is the exact year where the net wealth of the homeowner (current home market value minus 6% selling costs minus remaining loan balance) exceeds the net wealth of the renter (initial down payment and closing costs invested in an index fund at the specified annual return plus any ongoing monthly cash savings).
Home buyers pay upfront closing costs (2% to 3%) when purchasing, substantial mortgage interest in the early years of amortization, and 5% to 6% broker commissions when selling. If you relocate within 3 years, home price appreciation rarely overcomes these combined transaction frictions.
The 5% rule estimates the unrecoverable cost of homeownership: ~1% for property taxes, ~1% for ongoing maintenance/repairs, and ~3% for the cost of capital/mortgage interest. If comparable monthly rent is less than 5% of the home's value divided by 12, renting is generally mathematically superior.
No. Rent buys immediate housing shelter without maintenance risk, capital illiquidity, or interest friction. If a renter diligently invests their saved down payment and lower monthly expenses into diversified index funds (e.g., S&P 500 returning historical ~7-10%), renting can yield greater long-term net wealth than homeownership in high-cost metro areas.
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