Run the real numbers — monthly costs, break-even point, and total cost over time.
Estimated PMI and homeowners insurance are already factored into this estimate for down payments under 20%.
| Year | Rent Paid | Buy Paid | Home Value | Equity | Ahead |
|---|
How the net-worth row is built (assumption set, Oct 2026). Buy: home value grows at the appreciation rate you set, minus the remaining loan balance, 6% selling costs and 2.5% closing costs at purchase. Each year, that year's rent (rising by the increase you set) is compared with that year's cost of owning. Rent: your down payment is kept as cash plus whatever buying would have cost more than renting. Buy: when renting costs more, the buyer keeps that difference instead. Both sides' cash is assumed to earn 0%. Assuming a 4–7% investment return on the renter's cash would favor renting; this tool does not model it. PMI 0.8% of the loan until the balance is under 78% of the price, homeowners insurance 0.5% of the price per year.
This calculator provides estimates for educational purposes only and does not account for all individual factors (tax deductions, investment risk, etc.). Results are not financial advice. Consult a licensed financial advisor and lender before making a decision.
Chris Harris, REALTOR® · Real Broker, LLC · Kentucky license #299754
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