Financial Tools
Rent vs. Buy Calculator
See the real numbers behind renting vs. buying — including equity growth, net worth over time, and the year buying pulls ahead.
Why Buying Almost Always Wins
Renting feels safe — no maintenance, no commitment. But every rent payment disappears forever. When you buy, your monthly payment builds equity: real wealth you can access, borrow against, or pass on. Over time, that difference compounds dramatically.
Each mortgage payment reduces your loan balance and builds ownership. After 30 years, you own the home outright. After 30 years of renting, you own nothing.
California home values have historically appreciated 4–6% per year. A $600K home today could be worth $1M+ in 10 years — growth that belongs entirely to you as the owner.
A fixed-rate mortgage locks your principal and interest payment for 30 years. Meanwhile, rents in Sacramento and the Bay Area have risen 5–8% annually — your landlord can raise rent every year.
Homeowners can deduct mortgage interest and property taxes, reducing their taxable income. Renters receive no such benefit. Over a 30-year mortgage, this can save tens of thousands of dollars.
Your Numbers
Buying
Renting
Time Horizon
Buying builds $471K in equity over 10 years — renters have $0 to show.
Your home appreciates to $932K while your loan balance drops to $461K, building $471K in equity. Rent money is gone forever.
Net Worth: Buying vs. Renting
Buyer net worth = home equity (value − loan balance). Renter net worth = $0 (no asset, no savings assumed).
- Buyer Net Worth (Equity)
- Renter Net Worth ($0)
Home Equity & Value Growth
How your home value and equity grow as you pay down the mortgage.
- Home Value
- Your Equity
Total Money Spent: Buy vs. Rent
Gold = total buying costs (mortgage, taxes, insurance, HOA, maintenance). Green stacked on top = equity built — showing how much of that spending you get back. Grey = cumulative rent paid (gone forever).
- Total Buying Cost
- Equity Gained (Recovery)
- Total Rent Paid
The green segment shows equity you recover — your true net cost is Total Buying Cost minus Equity Gained. Rent is gone forever.
Ready to Stop Renting?
These numbers are estimates — let's run the real math for your specific situation and find the right home in your budget.
📋 Disclaimer: Results from this comparison tool are estimates provided for educational purposes only. Assumptions used (interest rates, home appreciation, maintenance costs, etc.) may differ from your actual situation. This tool does not constitute financial, mortgage, or investment advice. Please consult a qualified financial professional before making any real estate decisions.