The home
Over 20 years
Renting saves you
$379,334
Break-even point
22months
Stay longer than 2 years and buying wins.
Monthly payment
$2,523
Down payment
$80,000
Your true monthly payment
Principal & Interest
$2,023
Property Tax
$400
Home Insurance
$100
HOA
—
Total Monthly
$2,523
Escrow estimates are for illustration only. Your actual escrow amount is set by your lender based on local tax assessments and insurance quotes. PMI rates vary by lender and credit score.
Reality check
The full picture over 20 years
Every dollar leaving your pocket — mortgage, taxes, insurance, HOA, maintenance combined.
Raw total paid out
$605,428
But that's not the real number. Rent and costs grow each year.
Net advantage of renting
$379,334
True costs account for rent growth, home appreciation, maintenance increases, and opportunity cost of your down payment.
What this loan actually costs you
Most buyers focus on the monthly payment. Here's what the bank earns over the life of your loan.
Total interest paid
$408,142
You pay back 2.28× the original loan amount
In the first year, $20,695 goes to interest and only $3,577 reduces your loan balance.
See how your payment splits over time
Month 1 of 360
Notice how in month 1, most of your payment goes to interest. By month 233, that flips.
| Year | Buy total cost | Rent total cost | Home equity |
|---|---|---|---|
| 1 | $119,936 | $24,000 | $95,577 |
| 2 | $160,386 | $48,720 | $111,753 |
| 3 | $201,381 | $74,182 | $128,556 |
| 4 | $242,955 | $100,407 | $146,013 |
| 5 | $285,141 | $127,419 | $164,155 |
| 6 | $327,979 | $155,242 | $183,012 |
| 7 | $371,508 | $183,899 | $202,618 |
| 8 | $415,771 | $213,416 | $223,007 |
| 9 | $460,813 | $243,819 | $244,216 |
| 10 | $506,684 | $275,133 | $266,283 |
| 11 | $553,434 | $307,387 | $289,249 |
| 12 | $601,119 | $340,609 | $313,157 |
| 13 | $649,798 | $374,827 | $338,053 |
| 14 | $699,533 | $410,072 | $363,983 |
| 15 | $750,393 | $446,374 | $390,998 |
| 16 | $802,447 | $483,765 | $419,151 |
| 17 | $855,774 | $522,278 | $448,498 |
| 18 | $910,453 | $561,946 | $479,099 |
| 19 | $966,572 | $602,805 | $511,016 |
| 20 | $1,024,223 | $644,889 | $544,316 |