Rent vs Buy Break-Even Calculator

About this calculator

The rent-versus-buy break-even point is the number of years a homeowner must stay in a property before the total cost of buying — down payment opportunity cost, mortgage interest, property taxes, insurance, maintenance and closing costs on both ends, net of home appreciation and the equity built through principal paydown — drops below the cumulative cost of renting an equivalent home over the same period, including the opportunity cost of investing what would have been the down payment.

This calculation matters because closing costs and the upfront costs of buying (typically 2-5% of the home price) mean owning is almost always more expensive than renting in year one — buying only becomes the cheaper option after enough years have passed for equity growth and the tax and appreciation advantages of ownership to overcome that upfront hit, which is why financial advisors generally warn against buying if you expect to move within just a few years.

This calculator takes your local rent, home price, mortgage rate, expected appreciation, and other holding costs and compares the full cost of owning against renting year by year until it shows you exactly which year buying starts to win.