After N years, which path leaves more ending net worth—once the home is sold and both sides use the same investment assumptions?
Ending net worth over time
Higher is better. Buy includes net sale proceeds after selling costs; both sides use the same assumed investment return.
Final tally
Ending net worth after your stay. Taller bar is ahead.
How this rent-vs-buy comparison works
Both paths start with the same liquid cash: the down payment plus buyer closing costs. The buyer spends that cash to purchase. The renter invests it. Each month, whoever has the lower housing cash requirement invests the difference at the same assumed return. After the years you choose, the model assumes the home is sold, selling costs are paid, and the mortgage is cleared. It then compares ending net worth.
Mortgage-interest and property-tax deductions are not modeled. PMI is not modeled; if down payment is under 20%, a warning notes that mortgage insurance may apply. Appreciation, rent growth, and investment return are planning assumptions you type—not forecasts.
Use mortgage PITI to sanity-check the owner payment, and read the methodology for the full rules. This page is a planning sketch, not a reason to skip a home inspection or a lease you can afford.
FAQ
Why can a short stay favor renting?
Buying and selling have friction. If you sell soon, commissions and closing-style costs can outweigh equity growth—especially when the cash used for a down payment could have stayed invested.
Is the investment return guaranteed?
No. It is an illustrative assumption applied the same way to both sides so the comparison stays fair. Try 0%, 4%, and 7% to see how sensitive the answer is.
Does this include remodeling?
Only through the maintenance rate you set (a flat percent of purchase price). A kitchen remodel is extra.