Purchase Details
$
%
%
yr
Ongoing Costs
%/yr
$
$
%/yr
Growth Assumptions
%/yr
%/yr
Rental Costs
$
$
Growth Assumption
%/yr
Your Break-Even Point
—
—
Monthly Cost to Buy
—
Mortgage + taxes + ins + fees
Monthly Cost to Rent
—
Rent + renter's insurance
📈 Cumulative True Cost Over Time
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Raptive / Ezoic
Raptive / Ezoic
Year
Net Buy Cost
Net Rent Cost
Advantage
How the Rent vs. Buy Break-Even Calculator Works
This calculator runs a year-by-year comparison of your true cost of ownership versus renting over time. Unlike simple mortgage vs. rent comparisons, it accounts for the opportunity cost of your down payment — money that could be invested in the stock market instead.
Each year, the net buying cost reflects what you paid in mortgage interest, property taxes, insurance, HOA, and maintenance, minus the equity you built through principal repayment and home appreciation. The net renting cost reflects cumulative rent paid, minus the growth of your invested down payment.
The year those lines cross is your break-even point — the moment buying becomes the financially superior choice.
What is a good break-even period for buying a house?
Most financial experts consider a break-even period of 5–7 years to be reasonable. If you plan to stay in a home longer than your calculated break-even point, buying typically makes financial sense. If you might move sooner, renting preserves flexibility.
Why does the calculator include investment returns for renters?
Your down payment is a significant sum of money. If you rent instead of buy, that capital could be invested and growing. The calculator assumes renters invest their down payment (and monthly savings vs. buying) at the rate you specify, giving a fair comparison of both paths.
What mortgage rate should I use?
Use your actual quoted rate if you have one, or the current average 30-year fixed rate (check Bankrate or Freddie Mac's weekly survey). Even a 0.5% difference can shift your break-even by 1–2 years.
Does this calculator include closing costs?
Not directly, but you can account for them by adding them to your home price. Closing costs typically run 2–5% of the home price and can add 1–2 years to your break-even point.