Rent vs. Buy: $400K Home at 7%, vs. $2,000 Rent
Compare the financial outcomes of buying a $400,000 home at 7% mortgage rate against renting at $2,000/month over 10 years.
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.
At a 7% mortgage rate, buying a $400,000 home competes differently against $2,000 monthly rent than at historically lower rates.
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.