Rent vs. Buy
The biggest financial decision of your life, simplified. See the math behind building equity vs. building a portfolio.
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The 5% Rule & Opportunity Cost
Most people compare "Monthly Rent" vs "Mortgage Payment". This is wrong. You should compare Unrecoverable Costs:
- Rent: 100% unrecoverable.
- Owning: Mortgage Interest, Property Tax, Maintenance, and Cost of Capital (Opportunity Cost).
Our calculator runs a 30-year simulation accounting for appreciation (3%), rent inflation (3%), and stock market returns (7%) on the cash you'd save by renting. The "Crossover Point" is when your Home Equity finally beats your Investment Portfolio.