Rent $2,500/mo vs Buy a $600K Home
A side-by-side financial comparison of renting at $2,500/month vs buying a $600,000 home with 20% down over 5 to 30 years.
Monthly Rent
$2,500
+ 3%/yr increases
Monthly Ownership
$4,378
P&I + tax + ins + maint
Monthly Ownership Breakdown
Principal & Interest
$3,153
Property Tax (1.1%)
$550
Insurance
$175
Maintenance (1%)
$500
Down Payment Required (20%)
$120,000
Wealth Comparison Over Time
| Year | Renter Wealth* | Home Equity | Winner | Difference |
|---|---|---|---|---|
| Year 5 | $176,319 | $261,389 | Buy | $85,070 |
| Year 7 | $205,659 | $326,717 | Buy | $121,058 |
| Year 10 | $259,071 | $435,679 | Buy | $176,608 |
| Year 15 | $380,660 | $651,647 | Buy | $270,987 |
| Year 20 | $559,315 | $920,782 | Buy | $361,467 |
| Year 30 | $1,207,519 | $1,684,076 | Buy | $476,557 |
* Renter wealth = down payment invested at 8% return. Home equity = home value (3.5% appreciation) minus remaining mortgage.
Analysis: Renting at $2,500 vs Buying at $600K
At $4,378/month, owning this $600K home costs significantly more than your $2,500/month rent. However, a portion of each mortgage payment builds equity, and the home is expected to appreciate at 3.5%/year.
Based on these assumptions, buying becomes the better financial move after about 5 years. If you plan to stay shorter than that, renting is more cost-effective. For a personalized analysis, use our mortgage calculator or explore other price points below.