ActivePayOS

Rent vs Buy

Compare renting versus buying with more context: equity built, selling costs, appreciation assumptions, and the option to keep the property as a rental later.

Inputs

This is still a planning tool, not a perfect underwriting model. The goal is cleaner judgment.

Keep this conservative. You can even set it to 0% as a stress test.

Results

A more realistic comparison that gives buying credit for equity built.

Loan Principal
$450,000.00
Mortgage Payment
$2,844.31
Principal + interest
Monthly Owner Cost
$3,719.31
Mortgage + tax + insurance + HOA + maintenance
Monthly Rent
$3,200.00
Principal Paid Down
$16,122.41
Equity built from paying down the loan over your timeline
Estimated Future Home Value
$530,604.00
Based on your appreciation assumption of 2.0%
Recovered Equity at Sale
$64,890.17
After estimated selling costs and remaining loan balance
Net Buy Cost
$131,004.85
Cash outflows minus recovered equity
Total Rent Cost
$115,200.00
Over 3 years
Recommendation
Rent likely cleaner

In this model, renting looks meaningfully cheaper after accounting for costs and recovered equity.

Difference over your timeline: $15,804.85 more net cost to buy than rent.

Important note

This is a planning tool for educational purposes only. It is not financial, tax, legal, or lending advice. Use it to frame the decision, then pressure-test the deal with a lender, agent, or other qualified professional before buying. Small changes in rate, repairs, appreciation, selling costs, or time at station can materially change the result.

What to ask before buying
  • How long do I realistically expect to stay here?
  • Do I still like the deal if appreciation is 0%?
  • Can I cover repairs and closing costs without draining my emergency fund?
  • If I PCS, would this still work as a rental after vacancy and maintenance?
  • Have I seen the full lender estimate, not just the headline rate?