Your numbers
$700,000
5.0% • $35,000
6.0%
30 years
$4,200
1.25% • $8,750 / yr
$2,400 / yr
Auto-calculated
Loan Amount
$665,000
Monthly P&I
$3,987
Monthly PMI
$111
Monthly Tax
$729
The Real Math
Break-even
4.8 months
That's when buying pulls ahead of renting.
What "break-even" means
It's the moment your total cost of owning (down payment, mortgage, taxes, insurance) is fully offset by your equity + home appreciation, compared to what you'd have spent renting. Before this point, renting looks cheaper on paper. After it, every month you own builds real wealth.
Renting
$4,200/mo
5% annual rent increases
Year 3 monthly rent$4,631
Year 6 monthly rent$5,360
Year 9 monthly rent$6,205
Year 12 monthly rent$7,183
Buying (all-in)
$5,027/mo
Principal & Interest$3,987
Property Tax$729
Insurance$200
PMI$111
Cumulative cost over time· 8% home appreciation
Equity built vs rent paid· 8% home appreciation
Milestones every 5 years
Assumes 8% annual home appreciation and 5% annual rent increases.
| Year | Home Value | Equity | Rent Paid | Net Advantage |
|---|---|---|---|---|
| 5 | $1,028,530 | $409,718 | $278,492 | +$351,589 |
| 10 | $1,511,247 | $954,737 | $633,926 | +$950,754 |
| 15 | $2,220,518 | $1,748,044 | $1,087,560 | +$1,902,724 |
| 20 | $3,262,670 | $2,903,546 | $1,666,524 | +$3,342,220 |
| 25 | $4,793,933 | $4,587,702 | $2,405,446 | +$5,470,327 |
| 30 | $7,043,860 | $7,043,860 | $3,348,518 | +$8,574,586 |
Key insights
- →Every month you rent, 100% of your payment is gone forever. Every month you own, a slice goes into your equity.
- →At 8% appreciation, your home grows from $700,000 to about $7,043,860 in 30 years.
- →Rent rarely stays flat — at 5% annual increases, your last month of rent in year 30 would be ~$17,288.