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Rent vs buy

The headline is the gap after you sell — not this month’s rent. Green outline marks the cheaper path.

Cost over time

Running net cost if you stay, then sell.

Final tally

Cheaper path is the taller win — lower bar is better.

How this rent-vs-buy comparison works

The slogan “the mortgage is less than rent” ignores the down payment that could have stayed invested, maintenance, property tax, insurance, HOA, and selling costs that often run about 6–10% of price. Renting has annual increases and no equity. This model nets those cash flows over the years you say you will stay, then assumes you sell the house at the end.

Short stays often favor renting because closing costs and commissions do not have time to be earned back. Long stays can favor buying if the home actually appreciates and you would have paid rising rent anyway. Appreciation is an assumption you type, not a forecast. A flat or falling market can flip the result even if you “love the house.”

Use mortgage PITI to sanity-check the owner payment, then read the rent-or-buy guide for the stay-length argument in more depth. This page is a planning sketch, not a reason to skip a home inspection or a lease you can afford.

FAQ

Why does a three-year stay often favor renting?

You pay buying and selling friction twice in a short window. Equity growth rarely covers 6–10% in/out costs plus maintenance unless prices jump quickly.

Is the down payment treated as “free”?

No. The model gives that cash an opportunity cost — it could have earned a return if you kept renting. Change that return if your alternative is a savings account, not a brokerage.

Does this include remodeling?

Only through the maintenance rate you set. A kitchen gut is extra. Raise maintenance or shorten the stay if you know a big project is coming.