Buy
Purchase, loan & true ownership costs
PMI is charged only while LTV > 80% and down payment < 20% (typical US convention). Toggle % / $ — last-touched unit wins; the other is derived.
You already own
Current position · keep vs sell & rent
Advanced · capital gains on sale today
Educational only — not a full §121 calculator. Set tax to 0 to ignore gains tax.
Compares keeping the house for the horizon (then selling) vs selling today, investing net proceeds, and renting. Same liquid assets on both paths.
Rent
Lease cost path over the horizon
Shared assumptions
What makes this a true comparison
Off: nominal future dollars. On: wealth & cash charts deflated at your inflation rate (winner unchanged).
Liquid assets optional Cash / stocks / bonds for down payment & opportunity cost
In buy mode, checked sources fund down + closing in draw order; leftovers stay invested at each source’s return. The renter keeps all balances invested.
| Source | Balance ($) | Return %/yr | Use? | Order |
|---|
Off: classic model — down + closing is the shared starting wealth invested at your single invest-return rate. Turn on for a realistic example funding mix.
Net worth over time
Buy = equity after sale costs + liquid portfolio · Rent = invested capital + deposit
Annual housing cash outlay
True net cash leaving your pocket each year (buy includes tax shield if enabled)
What ownership really costs
Cumulative through the horizon — not just the mortgage payment
Sensitivity
How the advantage moves when assumptions flex
| Parameter | Low | Base adv. | High |
|---|
Year-by-year true ledger
Wealth, cash, equity, and rent path
| Year | Home value | Loan bal. | Buy NW (sold) | Rent NW | Advantage | Buy cash/yr | Rent cash/yr |
|---|
How this is a true rent vs buy
- Same starting wealth. Down payment + closing costs buy the house for the owner, or seed the renter’s investment portfolio.
- True ownership cost. P&I, property tax (on rising value), insurance, HOA, maintenance, and PMI until LTV ≤ 80% — not just the mortgage payment.
- Opportunity cost every month. Whoever spends less on housing invests the difference at your assumed market return.
- Terminal reality. Owner sells at the horizon with selling costs; equity is not free cash until then.
- Optional tax shield. Rough deduction on interest + property tax at your marginal rate (not full US tax software).
- % or $ inputs. Down payment, closing, and selling costs can be entered either way; the other unit is derived.
- Liquid asset buckets. Optionally fund the purchase from cash/stocks/bonds with different returns and keep the rest invested.
- Already own mode. Compare keeping the house vs selling today, paying gains tax (if set), and renting with proceeds invested.
- Today’s dollars. Optional inflation deflator so long-horizon wealth is easier to interpret (winner unchanged).
Educational model for the US market. Not financial, tax, or lending advice. Markets, taxes, and personal situations vary.