Mortgage vs Renting (Detailed)
30-year comparison: ownership equity + appreciation vs rent + alternative-investment growth.
Result
Renting advantage
$84,504
Over 30 years.
- Down payment$80,000
- Loan principal$320,000
- Monthly P&I$2,129
- Total interest paid$446,428
- Home value year 30$970,905
- Buy: net wealth$524,477
- Rent: net wealth (incl. invested savings)$608,980
- Difference$-84,504 (rent)
Step-by-step
- Buy: home future value $970,905 − total interest $446,428 = $524,477.
- Rent: down payment grows to $608,980; monthly diff invested = $0.
- Difference: $-84,504.
How to use this calculator
- Enter home price and down payment.
- Enter mortgage rate, equivalent rent, expected investment return, and home appreciation.
- Compare net wealth at the end of the period.
About this calculator
A simplified 30-year comparison. Buying captures home appreciation but pays interest. Renting + investing captures market returns on what you didn't spend. The result depends heavily on assumed appreciation, investment return, and the mortgage-to-rent gap. Caveats: this calculator simplifies maintenance, taxes, insurance, transaction costs — for production decisions, run a more detailed analysis or work with a financial planner.
Frequently asked
Not modeled here for simplicity. Typical: 1.5% property tax + 1.5% maintenance per year. Add these to monthly cost for a full picture.
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