Calculator
Should I keep renting or buy?
Buying is not automatically better than renting. It mostly comes down to how long you stay. This compares both paths year by year and tells you when buying pulls ahead.
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Questions people ask
- What does the breakeven year mean?
- The first year in which owning leaves you with more net worth than renting and investing the difference. If you plan to move before then, renting is usually the cheaper choice.
- Why does appreciation matter so much?
- Equity growth is the main financial benefit of owning. At 3% a year a $500,000 home gains about $15,000 in the first year. Try 0% to see how buying looks without any appreciation.
- What return should I assume for the down payment?
- The after-tax return you would realistically earn if the money stayed invested. 5% is a balanced assumption; a high-yield savings account would be lower, an all-stock portfolio higher but riskier.