exityear lite
a free and private financial projection tool with a bit more oomph than others
Buy vs. Rent Financial Arbitrage
Compare 30-year net worth trajectories: Home equity accumulation vs. down payment invested in index funds.
Property & Loan Parameters
Renting & Market Return
Net Worth Trajectory Comparison
Net equity built through homeownership vs. accumulated portfolio from investing the down payment and monthly savings:
| Year | Buyer Net Equity | Renter Portfolio | Advantage (Buy - Rent) |
|---|---|---|---|
| Year 1 | $59,577 | $104,866 | -$45,289 (Rent) |
| Year 2 | $74,673 | $118,246 | -$43,573 (Rent) |
| Year 3 | $90,363 | $132,166 | -$41,803 (Rent) |
| Year 4 | $106,675 | $146,655 | -$39,980 (Rent) |
| Year 5 | $123,636 | $161,742 | -$38,106 (Rent) |
| Year 6 | $141,278 | $177,461 | -$36,183 (Rent) |
| Year 7 | $159,632 | $193,845 | -$34,214 (Rent) |
| Year 8 | $178,731 | $210,932 | -$32,201 (Rent) |
| Year 9 | $198,612 | $228,761 | -$30,149 (Rent) |
| Year 10 | $219,311 | $247,373 | -$28,062 (Rent) |
How Opportunity Cost Works
When you buy, your down payment and closing costs are locked into non-liquid home equity, and you pay mortgage interest, property tax, maintenance, and insurance. When you rent, you invest that down payment upfront in index funds and invest any monthly savings difference.
Break-even logic: Buying typically lags in early years due to closing costs and upfront interest, but gains advantage later as loan amortization accelerates and rent compounds.
Illustrative only. Not financial advice. Exityear Lite is a simplified, sunset version of a retired product, kept online as a portfolio showcase. Projections are deterministic estimates based on the assumptions you enter, use a simplified flat tax rate, and omit market volatility and many real-world factors. Some links may be sponsored affiliate recommendations where we earn a commission at no additional cost to you. Do not use it to make financial decisions. Consult a qualified professional.