Rent vs. Buy Calculator
Compare the long-term financial impact of renting versus buying a home.
Buying
California avg ~1.25%
Typically 1–2% of home value/yr
Historical CA avg ~3–5%
Renting
Historical avg ~3%
Avg stock market ~6–7% real
Time Horizon
After 10 years, renting comes out ahead
$24,589 advantage
Home Equity (Buy)
$331,427
Investment Balance (Rent)
$356,017
Home Value
$674,677
Total Rent Paid
$343,916
Wealth Over Time
Buy = home equity · Rent = investment balance
Year-by-Year Comparison
| Year | Home Value | Buy Equity | Rent Investments | Advantage |
|---|---|---|---|---|
| 1 | $515,208 | $119,271 | $121,730 | Rent +$2,459 |
| 2 | $530,879 | $139,299 | $144,232 | Rent +$4,933 |
| 3 | $547,026 | $160,118 | $167,535 | Rent +$7,418 |
| 4 | $563,664 | $181,766 | $191,674 | Rent +$9,908 |
| 5 | $580,808 | $204,282 | $216,680 | Rent +$12,398 |
| 6 | $598,474 | $227,708 | $242,589 | Rent +$14,881 |
| 7 | $616,677 | $252,088 | $269,438 | Rent +$17,351 |
| 8 | $635,434 | $277,468 | $297,266 | Rent +$19,798 |
| 9 | $654,762 | $303,897 | $326,111 | Rent +$22,214 |
| 10selected | $674,677 | $331,427 | $356,017 | Rent +$24,589 |
| 11 | $695,198 | $360,114 | $387,027 | Rent +$26,913 |
| 12 | $716,343 | $390,015 | $419,187 | Rent +$29,172 |
| 13 | $738,131 | $421,192 | $452,546 | Rent +$31,354 |
| 14 | $760,582 | $453,711 | $487,155 | Rent +$33,444 |
| 15 | $783,716 | $487,640 | $523,065 | Rent +$35,425 |
| 16 | $807,553 | $523,054 | $560,334 | Rent +$37,280 |
| 17 | $832,116 | $560,029 | $599,019 | Rent +$38,990 |
| 18 | $857,425 | $598,649 | $639,181 | Rent +$40,532 |
| 19 | $883,505 | $639,001 | $680,885 | Rent +$41,884 |
| 20 | $910,377 | $681,177 | $724,197 | Rent +$43,020 |
| 21 | $938,068 | $725,278 | $769,188 | Rent +$43,911 |
| 22 | $966,600 | $771,406 | $816,630 | Rent +$45,224 |
| 23 | $996,000 | $819,675 | $866,998 | Rent +$47,323 |
| 24 | $1,026,294 | $870,202 | $920,472 | Rent +$50,270 |
| 25 | $1,057,510 | $923,113 | $977,245 | Rent +$54,132 |
| 26 | $1,089,675 | $978,542 | $1,037,519 | Rent +$58,977 |
| 27 | $1,122,818 | $1,036,631 | $1,101,511 | Rent +$64,880 |
| 28 | $1,156,970 | $1,097,532 | $1,169,450 | Rent +$71,919 |
| 29 | $1,192,160 | $1,161,404 | $1,241,579 | Rent +$80,175 |
| 30 | $1,228,421 | $1,228,421 | $1,318,157 | Rent +$89,736 |
This calculator is provided for educational and informational purposes only. Results are estimates based on the assumptions you enter and do not account for all costs, tax implications, or individual financial circumstances. Actual results will vary. This does not constitute financial, tax, or legal advice. Contact Patron Mortgage for a personalized mortgage consultation. Patron Mortgage. NMLS 1747739.
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