The owner pays principal & interest, property tax, insurance, maintenance, and PMI until 20% equity; the home appreciates monthly at your yearly rate. The renter starts by investing the down payment and buying costs, pays rent that rises yearly, and invests any month-to-month savings versus owning at your investment return. When owning is cheaper that month, the owner invests the difference the same way. The owner's net position is home value minus selling costs and the remaining loan, plus any owner-side investments; the renter's is their investment balance.

What data does it use?

Standard amortization and compound-growth mathematics (public domain).

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Buy vs. Rent: how it works

Simulates buying versus renting month by month: the buyer pays a full ownership cost and builds equity in an appreciating home; the renter pays growing rent and invests the cash they didn't spend (down payment, buying costs, and any monthly savings). The break-even point is the first month the buyer's net position catches the renter's.

Step by step

The owner pays principal & interest, property tax, insurance, maintenance, and PMI until 20% equity; the home appreciates monthly at your yearly rate.
The renter starts by investing the down payment and buying costs, pays rent that rises yearly, and invests any month-to-month savings versus owning at your investment return. When owning is cheaper that month, the owner invests the difference the same way.
The owner's net position is home value minus selling costs and the remaining loan, plus any owner-side investments; the renter's is their investment balance.

Sources

Standard amortization and compound-growth mathematics (public domain).

None — the simulation is fully described above; defaults are shown on-screen.