Rent vs Buy Examples
Compare three rent vs buy examples showing a 10-year baseline, a short three-year stay, and a 15-year path that reaches a modeled break-even point.
How should you use these Rent vs Buy Calculator examples?
These examples turn the Rent vs Buy Calculator inputs into complete scenarios with stated values, calculation steps, and interpreted results. Use them to check how the calculator behaves, compare your own situation with realistic cases, and identify which inputs have the greatest effect before relying on an estimate.
Three Rent vs Buy Scenarios
These examples are generated by the same tested engine used on the Rent vs Buy Calculator. They hold every assumption constant except the length of stay, making the effect of purchase costs, selling costs, mortgage paydown and compounding easier to see.
Each scenario uses a $500,000 home, $100,000 down payment, 6.50% 30-year mortgage, $2,500 monthly rent, 1.20% property tax, 0.35% homeowners insurance, 1.00% maintenance, no HOA, $20 renter insurance, 3.00% buying costs, 6.00% selling costs, 3.00% home appreciation, 3.00% rent and owner-cost growth, and 5.00% investment return.
Example 1: 10-Year Rent vs Buy Baseline
The first household expects to stay for 10 years. The initial buying cost is higher than the initial rent, so the renter begins with $115,000 invested and also invests the monthly housing-cost difference.
Buying path
| Mortgage payment | $2,528.27 |
|---|---|
| Initial total monthly cost | $3,590.77 |
| Ending home value | $671,958.19 |
| Ending loan balance | $339,104.51 |
| Equity after selling costs | $292,536.19 |
Comparison result
| Renter starting investment | $115,000.00 |
|---|---|
| Renter ending investments | $319,265.66 |
| Buyer net worth | $292,536.19 |
| Renter net worth | $319,265.66 |
| Modeled lead | Renting leads by $26,729.47 |
Buying does not reach an annual break-even point within 10 years. The result does not mean renting always wins; it means renting leads under this exact price, rent, cost and growth scenario at year 10.
Example 2: Move After Three Years
The second household uses identical inputs but expects to move after three years. The buyer has less time for principal reduction and modeled appreciation to offset both purchase and sale costs.
| Initial buying cost | $3,590.77 |
|---|---|
| Initial renting cost | $2,520.00 |
| Ending home value | $546,363.50 |
| Equity after selling costs | $127,912.72 |
| Renter investments | $172,114.71 |
| Modeled lead | Renting leads by $44,201.99 |
| Break-even year | Not reached |
The renter's lead is larger than in the 10-year case. This illustrates why a likely move within a few years deserves its own scenario instead of assuming a long holding period.
Example 3: Stay for 15 Years
The third household keeps all financial assumptions unchanged and extends only the comparison period to 15 years.
| Ending home value | $778,983.71 |
|---|---|
| Ending loan balance | $290,236.56 |
| Equity after selling costs | $442,008.12 |
| Renter investments | $436,380.81 |
| Buyer net worth | $442,008.12 |
| Renter net worth | $436,380.81 |
| Modeled lead | Buying leads by $5,627.31 |
| First annual break-even | Year 15 |
Buying first moves ahead at the year-15 checkpoint, but the lead is only $5,627.31. That narrow result should be stress-tested because a small change in home appreciation, maintenance, selling costs or investment returns can reverse it.
Compare the Three Rent vs Buy Scenarios
| Scenario | Buyer net worth | Renter net worth | Modeled result | Break-even |
|---|---|---|---|---|
| Three-year stay | $127,912.72 | $172,114.71 | Renting +$44,201.99 | Not reached |
| 10-year baseline | $292,536.19 | $319,265.66 | Renting +$26,729.47 | Not reached |
| 15-year stay | $442,008.12 | $436,380.81 | Buying +$5,627.31 | Year 15 |
The comparison period alone changes the modeled winner. It does not create a universal rule about how long someone must stay because local prices, rent, rates, taxes, transaction costs and uncertain growth assumptions differ.
Reproduce the Results
- Open the Rent vs Buy Calculator and select Reset.
- Keep the default home price, down payment, mortgage, rent and cost assumptions.
- For Example 2, change Years to compare to 3.
- For Example 3, change only Years to compare to 15.
- Select Calculate after each change and compare the headline, net-worth cards, charts and annual table.
- Next, test appreciation, rent growth and investment return one at a time to identify which assumption drives your own result.
Corrections and Review
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