Rent vs Buy Break-even year Runs in-browser

Rent vs Buy Calculator (Free)

Compare total costs, equivalent monthly cost, and break-even timing across renting and buying assumptions. Adjust rent growth, appreciation, closing costs, and investment returns to see how the decision changes.

Equivalent rent cost — Average monthly cost if you keep renting

Equivalent buy cost — Average monthly cost if you purchase

Break-even year — When buying becomes cheaper

Start Comparing FAQ

All calculations run in your browser. We don’t upload your data.

Inputs

Adjust rent, mortgage, appreciation, and investment assumptions. We’ll compare total costs for renting vs buying over your chosen holding period.

Horizon & Inflation Holding Period (years) General Inflation (optional, %/year)

Rent Starting Rent (monthly) Rent Growth Rate (%/year)

Home Purchase Home Price

Down Payment (%) Mortgage APR (%) Mortgage Term (years) Property Tax Rate (% of price / year)

Homeowners Insurance (monthly) HOA Fee (monthly) Maintenance Rate (% of price / year) PMI Rate (%/year if LTV > 80%)

Closing Costs (% of price) Selling Costs (% of future sale price) Home Appreciation Rate (%/year)

Investments & Opportunity Cost Investment Return Rate (%/year) Invest rent vs buy monthly payment difference

Summary

We convert all rent and buy cash flows into total cost and equivalent monthly cost over the selected holding period.

Scenario	Total Cost	Equivalent Monthly
Rent	—	—
Buy	—	—

Disclaimer: For informational purposes only; not financial or tax advice.

Annual summary

Year	Rent Paid	Buy Housing Cost	Home Value	Equity

Which Is Cheaper Over Time?

The calculator tracks rent and buy cash flows month by month. For buying we include mortgage payments, property taxes, insurance, PMI, HOA, maintenance, and selling costs. For renting we allow rent growth and the investment value of your saved down payment.

Tip: Adjust home appreciation and investment returns to see how opportunity cost changes the decision.

Break-Even Year & Equity Growth

Break-even year

We compute the earliest year when total buy cost (net of home equity) beats renting. If no break-even occurs within your holding period, we’ll let you know.

Equity vs rent paid

Buying builds equity through principal paydown and appreciation. Renting keeps cash flexible, especially if investment returns beat home appreciation.

FAQ

What maintenance rate should I use?

Many planners assume 1–2% of the home price per year to cover ongoing repairs, appliances, and wear-and-tear. You can adjust the rate to match the property condition.

When does PMI apply?

Private Mortgage Insurance is added when the loan-to-value is above 80%. Once equity grows past 20%, PMI can often be removed; this calculator assumes PMI applies for the full period unless you set LTV ≤ 80% up front.

What does the investment return rate represent?

We use it to estimate the opportunity cost of cash. Renters invest their saved down payment (and optionally any monthly savings), while buyers may invest payment differences if rent would have been higher.

Are tax deductions or credits included?

No. Mortgage interest deductions, state/local taxes, and other incentives are excluded. Consult a tax professional for personalized advice.