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2026 Edition

Your down payment isn't money spent.
It's a trade.

Putting $100K into a house means going long on real estate and shorting the S&P 500. Every other calculator ignores that. This one doesn't.

The rent vs buy calculator that finally accounts for investment returns — also searched as the buy vs rent calculator.

Homeowner

Buy + hold the property

Monthly costs

Mortgage (P+I)$2,608
Tax + Insurance$625
Total / mo$3,233
Home Equity (after selling costs)$321K
Home Value$705K
Total Cash Out (cumulative)-$592K
Net Worth$321K

Opportunity Cost of Down Payment

That down payment in an S&P index fund would have grown by $137K over the same period.

Renter + Investor

Rent & invest down payment in S&P 500

Wins by $230K

Monthly costs

Rent$2,200
Invest the difference+$1,033 → market
Cash out / mo$2,200
Down payment invested (S&P 500)$237K
Invested difference compounded$314K
Total rent paid (cumulative)-$296K
Net Worth$551K

Capital Reallocation View

Buying a home is essentially shorting the S&P 500 to long real estate. Your down payment is capital redirected — not spent.

Net Worth Over Time

Equity / portfolio balance after costs

Renter wins throughout

What happens after year 15?

Get the full 30-year projection — year-by-year table, breakeven analysis, printable PDF.

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This calculator is for educational purposes only and does not constitute financial advice. Projections are hypothetical and assume constant rates of return. Past performance is not indicative of future results. Selling costs assumed at 6% of home value.