Rent vs. Buy: $400K Home at 6% vs. $2,000 Rent for 15 Years
Over 15 years, buying a $400,000 home at 6% with 20% down versus renting at $2,000 per month reveals significant equity accumulation in the buy scenario.
How to use this tool
- Enter home price, down payment, mortgage interest rate, current monthly rent, annual home appreciation, annual rent increase and years to compare in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your buy scenario equity and the full breakdown beneath it.
A 15-year comparison of buying vs. renting shows the long-term advantage of homeownership on a $400,000 property at 6% mortgage rate.
Frequently asked questions
- What costs are not included?
- This model excludes property taxes, maintenance (~1% of home value/year), HOA fees, insurance, and transaction costs. Add these to the buy side for a more complete comparison.
- When does buying always win?
- In high-appreciation markets with long time horizons, buying typically dominates because leverage amplifies gains. Renting wins in stagnant markets when renters invest the difference aggressively.