Which one leaves you richer, and when.
Monthly costs, taxes, appreciation, and what your down payment could earn invested instead.
These two move the answer most. Everything else is below.
Price and rent are market medians across Domora's active listings. A typical home, not yours: type your own numbers.
Renting stays ahead for the full 7 years at these assumptions.
RangeYear 5 or later across rates 6.65% to 8.15% and appreciation ±1%.
Cautious
Beyond yr 7
rate +0.75, growth −1
Base
Beyond yr 7
your assumptions
Optimistic
Year 5
rate −0.75, growth +1
Wealth gap, year 7
−$7,255
renting ahead
Monthly, buying
$1,973
year 1 average, after tax benefit
Monthly, renting
$1,571
year 1 average, grows 3.0%/yr
Buying costs $401 a month more than renting in year one, after the tax benefit.
Shaded band: where break-even lands across rates 6.65% to 8.15%. The base line stays below zero for all 7 years.
| Year | Buy minus rent net worth |
|---|---|
| Year 1 | −$21,604 |
| Year 2 | −$19,962 |
| Year 3 | −$18,051 |
| Year 4 | −$15,850 |
| Year 5 | −$13,335 |
| Year 6 | −$10,479 |
| Year 7 | −$7,255 |
Every assumption21 fields
The same numbers the rail edits, in full. Changing one here moves the rail and the answer at the same time.
Tax impact7 years
Interest and property tax are deducted only where they clear the standard deduction, and only up to the caps. A flagged year is one where a cap actually bound.
| Year | Interest | Deductible int. | Property tax | Deductible tax | Tax savings | Caps |
|---|---|---|---|---|---|---|
| 1 | $15,253 | $15,253 | $2,805 | $2,805 | $470 | none |
| 2 | $15,104 | $15,104 | $2,889 | $2,889 | $454 | none |
| 3 | $14,944 | $14,944 | $2,975 | $2,975 | $437 | none |
| 4 | $14,771 | $14,771 | $3,065 | $3,065 | $417 | none |
| 5 | $14,585 | $14,585 | $3,157 | $3,157 | $394 | none |
| 6 | $14,385 | $14,385 | $3,251 | $3,251 | $369 | none |
| 7 | $14,169 | $14,169 | $3,349 | $3,349 | $340 | none |
Year by year7 years
Home value assumes 3.0%/yr price appreciation, which is a market-price path and not an income valuation. The investor-math tool prices its exit off the rent roll instead, so the two can legitimately differ for the same home.
| Year | Buy / mo | Rent / mo | Home value | Equity | Rent portfolio | Buy minus rent |
|---|---|---|---|---|---|---|
| 1 | $1,973 | $1,571 | $236,900 | $31,846 | $37,337 | -$21,604 |
| 2 | $1,987 | $1,618 | $244,007 | $41,048 | $44,887 | -$19,962 |
| 3 | $2,001 | $1,667 | $251,327 | $50,623 | $52,545 | -$18,051 |
| 4 | $2,017 | $1,717 | $258,867 | $60,591 | $60,307 | -$15,850 |
| 5 | $2,033 | $1,768 | $266,633 | $70,970 | $68,165 | -$13,335 |
| 6 | $2,049 | $1,821 | $274,632 | $81,783 | $76,113 | -$10,479 |
| 7 | $2,066 | $1,876 | $282,871 | $93,052 | $84,143 | -$7,255 |