RealityMath logo
RealityMath
menu

Use our Rent vs Buy calculator tool to compare 30-year wealth outcomes side by side.

Rent vs. Buy: Total Wealth Comparison

menu_book Read the Mathematical Guide
30-YEAR PROJECTION

Buying is the Winner

By choosing to buy, you are projected to build +$412,450 more in net worth compared to renting and investing the difference.

Projected Winner Net Worth
$2,140,890

Projected total wealth of the winning scenario after 30 years.

Wealth Growth Over Time

Projected net worth including home equity and portfolio value.

BUYING
RENTING
Year 0
Year 30

home Buying

Unrecoverable Monthly Average

Mortgage Interest (Avg) $1,840
Property Taxes (1.2%) $650
Maintenance (1% Rule) $541
Home Insurance $120
Total Sunk Cost $3,151

apartment Renting

Unrecoverable Monthly Average

Monthly Rent Payment $2,800
Renter's Insurance $35
Maintenance Costs $0
Property Taxes $0
Total Sunk Cost $2,835
info

Transparency Note: The Opportunity Cost

Our "Rent vs. Buy" logic goes beyond simple monthly payments. In the "Rent" scenario, we assume the $130,000 down payment is fully invested in the stock market today. We also assume that any monthly savings (when renting is cheaper than the total cost of owning) are also invested at your specified market return rate of 8% annually. RealityMath accounts for the mathematical reality that capital invested in a liquid portfolio often compounds faster than real estate equity.

Read our Comprehensive Guide to Housing Math arrow_forward
BREAK-EVEN YEAR
Year 6

WHEN BUYING BECOMES CHEAPER

EQUITY AT YEAR 30
$1,577,650

PROJECTED HOME VALUE

INVESTMENT PORTFOLIO
$1,310,400

IF RENTING & INVESTING

Real estate financial planning

Objective Data. Decisive Growth.

Make your move based on probability and compounding, not just emotion. Our algorithm refreshes with current market rates daily.

Rent vs. Buy Frequently Asked Questions

What is the break-even horizon? expand_more

The break-even horizon is the year when cumulative home equity exceeds cumulative investment portfolio value from renting. Before this point, renting and investing is mathematically superior; after it, buying wins. This depends on property appreciation, market returns, mortgage rates, and your personal rent/buy costs.

How does the calculator account for property appreciation? expand_more

We use historical Toronto real estate appreciation data (currently 3.5% annually) as the default, with full transparency to adjust it. Property appreciation is compounded annually and directly affects your home equity trajectory. Higher appreciation favors buying; lower appreciation favors renting and investing.

What happens after the break-even year? expand_more

After break-even, home equity grows faster than the renter's portfolio. Over a 30-year period, the total wealth (home equity plus sale proceeds) typically favors buying. However, this assumes you stay in the home and don't incur major repairs, property tax hikes, or market downturns that could reset the calculation.

Related Calculators