Rent vs. buy on a $450,000 home
Pre-filled with a $450,000 home price and an estimated $2,345/month rent, based on an assumed 16:1 price-to-rent ratio — a stated assumption, not real data for your market. At a typical 20% down payment, that's $90,000 down and roughly $13,500 in closing costs. Adjust any number below to match your actual numbers.
What matters to you
Five simple questions about what matters to you in life — not about renting or buying. We'll work out on our own which way each answer points, and blend that with the numbers on the other side into one answer.
Security
How important is feeling secure about where you live?
Stable home · Children's schooling · Long-term roots · Family security · Peace of mind
Freedom
How important is having the freedom to change your plans in life?
Career opportunities · Relocating · Business · Travel · Flexibility
Achievement
How important is owning a home as a personal life goal?
Pride · Sense of accomplishment · Building something of your own · Personal milestone · Identity
Financial Predictability
How important is having a fixed, predictable housing payment over the long term?
Protection from rent hikes · Long-term planning · Fixed-rate mortgage stability · No surprises
Convenience
How important is having fewer day-to-day responsibilities and unexpected costs?
No maintenance · No surprise repairs · Landlord handles issues · Time commitment · Simplicity
Your priorities, ranked
Your answer: rent or buy?
What the money says
We compare renting and buying the way a bank would: full monthly costs, taxes, and what your money could earn if you invested it instead of spending it on a home. Whoever pays less for housing each month invests the difference.
Advanced settings
Net worth over time
Year by year
| Year | Home value | Loan balance | Equity after selling | Net worth, buying | Net worth, renting | Difference |
|---|---|---|---|---|---|---|
| Year 1 | $465,750 | $356,052 | $77,096 | $77,096 | $120,672 | $-43,577 |
| Year 2 | $482,051 | $351,835 | $96,473 | $96,473 | $138,491 | $-42,018 |
| Year 3 | $498,923 | $347,331 | $116,667 | $116,667 | $156,995 | $-40,328 |
| Year 4 | $516,385 | $342,521 | $137,717 | $137,717 | $176,225 | $-38,508 |
| Year 5 | $534,459 | $337,384 | $159,663 | $159,663 | $196,227 | $-36,564 |
| Year 6 | $553,165 | $331,897 | $182,546 | $182,546 | $217,048 | $-34,501 |
| Year 7 | $572,526 | $326,037 | $206,412 | $206,412 | $238,737 | $-32,325 |
How this is calculated
Every month, whoever pays less for housing invests the gap at your assumed return; the renter starts with the buyer's down payment and closing costs already invested, since that cash never left their pocket. Property tax and maintenance track the home's rising value; rent, insurance, and HOA grow on their own schedules. At the end of the holding period the buyer sells (net of selling costs) and both sides pay tax on their investment growth, so every number you see is after-tax.
Your inputs and answers above are already baked into the link below — share it, or print the full page including the chart and table.
Frequently asked questions
What rent is comparable to a $450,000 home?
This page pre-fills $2,345/month, based on an assumed price-to-rent ratio of 16 — a stated assumption, not real local market data for any specific area. Rents for a comparable home vary widely by city and neighborhood, so replace this figure with an actual local listing before trusting the result.
How much is a typical down payment on a $450,000 home?
At a common 20% down payment, that's $90,000 up front, before closing costs. The calculator below lets you change this percentage — a smaller down payment frees up cash but increases what you finance.
What are closing and selling costs on a $450,000 home?
At assumed rates of 3% buying and 7% selling, that's roughly $13,500 to close on the purchase and about $31,500 in selling costs (agent commission and closing fees) if the home is later sold at the same price — more if it's appreciated by then, since selling costs scale with sale price.
Is 16 the right price-to-rent ratio for my market?
Probably not exactly. It's a round, stated assumption used to pre-fill this page, not a claim about any specific city. As a rough screen, a price-to-rent ratio under about 15 tends to favor buying and over about 21 tends to favor renting — check your area's actual ratio and enter your own rent figure in the calculator for a real answer.