Rent $3,000/mo vs Buy a $600K Home
A side-by-side financial comparison of renting at $3,000/month vs buying a $600,000 home with 20% down over 5 to 30 years.
Monthly Rent
$3,000
+ 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 $3,000 vs Buying at $600K
Owning this $600K home costs $4,378/month â $1,378 more than renting. The key question is whether equity building and home appreciation make up for the higher monthly costs over your expected holding period.
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.