$
$
%
%
Expected annual home value increase
$
%
Expected annual rent increase
%
Return on invested savings
By $57,793 in net worth
Comparing wealth accumulation: renting + investing vs buying
What you pay each month in year 1
per month (year 1)
In year 10: ~$2,871/mo
P&I only (+ taxes, insurance, maintenance)
Payment stays fixed for 30 years
How different appreciation rates affect the outcome
Break-even: Year 3
Break-even: Year 5
Break-even: Year Never
What these numbers mean for you
Base case: Buying breaks even in year 5. After 10 years, you're ahead by $57,793
In worst case (0% appreciation), renting may be better long-term
Over 10 years, you'll pay $302,647 in rent with no equity to show for it
The math assumes you invest the difference when renting. If you don't invest, buying wins by default.
Over 10 years, buying a $450,000 home builds $57,793 more wealth than renting at $2,200/month and investing the difference. You break even in year 5.
Here are the exact formulas behind your numbers. No black boxes — just math.
Monthly Mortgage Cost
Monthly Rent
Home Equity Built
Investment Alternative
Break-Even Year
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