← Back to calculatorAbout BuyHome or Invest
An independent tool built to bring honesty to one of the most consequential financial decisions most people will ever make.
The Problem We're Solving
Most rent vs. buy calculators ask one question: can you afford the mortgage? That misses the point entirely. When you put $100,000 into a down payment, you are making an investment decision — you are choosing real estate over every other asset class. That choice has an opportunity cost, and virtually no tool accounts for it.
BuyHome or Invest was built to fix that. It models what happens when your down payment — and the monthly cost difference between renting and owning — is invested in a diversified index fund instead. The result is an honest, apples-to-apples comparison of two real financial paths.
How the Calculator Works
Every projection runs year-by-year from the current date to your chosen horizon. Here is what each track models:
🏠 Buyer track
Home value compounds at your chosen appreciation rate. Equity grows as the mortgage amortizes (30-year fixed, standard schedule). Ongoing costs — property tax, insurance, and maintenance — are deducted each year. When you sell, transaction costs (default 6%) are subtracted from the net proceeds.
📈 Renter track
The down payment is invested on day one and compounds at your chosen S&P 500 return rate. With "invest the difference" enabled, the monthly cost gap between renting and owning is also invested each month. Rent increases with inflation over time.
⚖️ Breakeven year
The year at which the buyer's net wealth (home equity minus selling costs) first exceeds the renter's invested portfolio. Before this year, renting wins. After it, buying wins — assuming your input assumptions hold.
All projections assume constant annual rates. Real-world returns fluctuate, markets are unpredictable, and local housing dynamics vary widely. This tool is designed to build intuition and stress-test assumptions — not to replace professional financial advice.
Who Built This
BuyHome or Invest is an independent project built by a software engineer and personal finance enthusiast who got tired of watching friends make six-figure decisions based on oversimplified advice. No bank, brokerage, or real estate firm funds or influences this tool. There is no “right answer” baked in — the calculator will tell you to rent or buy depending entirely on the numbers you enter.
The source of truth is your specific situation: your market, your down payment, your alternative investments, and your time horizon. This tool exists to help you see that situation clearly.
Editorial Standards
Articles on this site cite primary sources where possible — academic research, government data (Federal Reserve, U.S. Census Bureau), and peer-reviewed economic indices such as the Shiller Home Price Index. We do not publish sponsored content or accept payment to endorse financial products.
Get in Touch
Found a bug? Have a suggestion? Spot an error in our methodology?
support@buyhomeorinvest.comBuyHome or Invest is for educational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional before making major financial decisions.