Free Tool
Rent vs. Buy Breakeven Calculator
Find the actual year buying starts costing less than renting — not a rule of thumb, your own numbers run year by year.
Run Your Numbers
Appreciation, rent growth, and cost assumptions below are your own planning estimates, not a forecast — small changes to them can shift the breakeven year. This is a planning tool, not financial advice.
$500$1,200/mo$3,000+
0%3%/yr8%
$80,000$220,000$600,000+
0%10% ($22,000)50%
1.5%/yr
0.35%/yr
1%/yr
3%/yr
3%
6%
1 year5 years15 years
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Questions About This Tool
How is this different from just comparing rent to a mortgage payment?
A side-by-side monthly payment comparison ignores two big things: renting builds you zero equity, and buying comes with upfront costs (down payment, closing costs) plus ongoing costs beyond principal and interest (taxes, insurance, maintenance). This tool tracks net cost — everything you've actually paid out, minus what you'd walk away with if you sold — for both paths, year by year.
What counts as 'net cost' for buying?
All the cash you've put in (down payment, closing costs, and every mortgage/tax/insurance/maintenance payment along the way) minus your equity if you sold at that point — home value minus remaining loan balance minus selling costs. It's the real out-of-pocket cost after accounting for what you'd get back.
Why does the breakeven year matter so much?
Before the breakeven year, renting is the cheaper option on a net-cost basis — buying's upfront costs and early-loan interest haven't been offset by equity yet. After it, buying comes out ahead. If you're not confident you'll stay past that year, renting is usually the lower-risk choice.
What should I use for appreciation and rent growth?
These are your own assumptions, not a market forecast — nobody can predict future appreciation or rent growth with certainty. Try running the numbers with a conservative assumption and an optimistic one to see how much the breakeven year actually moves; if it barely changes, your decision is fairly robust to being wrong about these guesses.
Does this account for tax deductions on mortgage interest?
No — mortgage interest and property tax deductibility depends on whether you itemize, which varies by household and can change with tax law. This tool sticks to the cash-flow and equity math that applies regardless of your tax situation; talk to a tax professional about whether itemizing would change your specific numbers.