Rent vs. Buy Calculator
Compare the true long-term cost of renting vs. buying a home, including a breakeven year.
Advanced assumptions
Net cost of buying
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Net cost of renting
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How the comparison works
Buying's net cost is your total cash out (down payment, closing costs, mortgage payments, property tax, insurance, maintenance, HOA) minus the equity you'd get back if you sold at the end of the period (home value after appreciation, minus the remaining mortgage balance and selling costs). Renting's net cost is total rent paid minus the investment growth you'd earn by investing the down payment and closing costs instead of spending them on a home. Whichever number is lower is financially ahead over that time horizon.
Why the breakeven year matters more than either number alone
Renting is almost always cheaper in the first few years, since buying carries big upfront costs (down payment, closing costs) that take time to pay off through equity and appreciation. The breakeven year is where that flips — how long you actually plan to stay is often the deciding factor, more than either raw number.
Worked example
A $400,000 home with 20% down ($80,000), a 6.5% 30-year mortgage, and $2,000/month rent (increasing 3%/year), compared over 7 years with a 6% investment return: buying's net cost comes to about $163,000, versus about $137,600 for renting — renting is ahead at year 7. Running the same assumptions year by year, the breakeven point where buying pulls ahead lands around year 11.
Frequently asked questions
What does "net cost" actually mean here?
For buying, it's everything you'd pay out of pocket (down payment, closing costs, mortgage payments, property tax, insurance, maintenance, HOA) minus what you'd walk away with if you sold at the end of the period (home value minus remaining mortgage balance minus selling costs). For renting, it's total rent paid minus the investment growth you'd get by investing what you didn't spend on a down payment and closing costs instead. Lower net cost wins financially.
What is the "breakeven year"?
The first year at which buying's net cost drops to or below renting's net cost, given your inputs. Below that many years, renting comes out ahead financially; beyond it, buying does. It moves a lot based on your assumptions — a lower mortgage rate or higher rent increases pull it earlier, a higher investment return pushes it later.
Why might my real numbers differ from this?
This doesn't include the mortgage interest tax deduction (which can meaningfully help buying if you itemize), doesn't model investing the month-to-month savings when renting is cheaper than the equivalent buying payment, and uses flat percentage assumptions for property tax, maintenance, and appreciation rather than your specific local numbers. Treat this as a framework for comparing scenarios, not a precise prediction.
Does this work offline?
Yes — every calculation happens with plain JavaScript math in your browser, so it keeps working without an internet connection once loaded.