Buy vs rent tool
Buy vs rent break-even calculator
The break-even point is the first month from which buying stays ahead of renting once selling costs are paid. This tool finds it, then shows how far each assumption would have to move for buy vs rent to come out even.
Example with default assumptions
After 10 years, buying finishes ahead of renting by about $41,686. On these assumptions buying overtakes renting after about 5.7 years, once selling costs are counted. The owner's first-month cash cost is $3,757, compared with $2,325 for the renter.
| Year | Home value | Mortgage balance | Buyer net worth | Renter net worth | Buying minus renting |
|---|---|---|---|---|---|
| 1 | $621,000 | $469,303 | $117,835 | $150,940 | −$33,105 |
| 2 | $642,735 | $458,120 | $149,966 | $176,418 | −$26,452 |
| 3 | $665,231 | $446,428 | $183,341 | $202,855 | −$19,514 |
| 4 | $688,514 | $434,203 | $218,008 | $230,289 | −$12,281 |
| 5 | $712,612 | $421,423 | $258,759 | $258,763 | −$4 |
| 10 | $846,359 | $348,248 | $460,065 | $418,379 | $41,686 |
What break-even means in a buy vs rent comparison
Buying costs more up front and more every month than a typical rent, but it builds equity and may appreciate. Renting costs less and leaves cash to invest. Break-even is the moment those two paths cross, with the buyer’s selling costs deducted.
Because the calculator tracks both households month by month, it reports a sustained break-even: the first month after which buying stays ahead, not a one-off crossing.
How to use the break-even drivers
The drivers panel solves for the home-price growth, rent level and investment return at which buy vs rent finishes level at your chosen horizon. If the break-even growth is well below what you believe is reasonable, buying has more cushion; if it is above, buying depends on strong prices.
Questions people ask
Why can break-even take so long?
Closing costs, selling costs and the interest-heavy early years of a mortgage all have to be recovered before ownership pulls ahead. Higher rates and slower price growth push the break-even further out.
What if buying never breaks even?
Then, on those inputs, renting and investing finishes ahead at every horizon. Change one assumption at a time to see which one matters most.
Is break-even a prediction?
No. It is the result of the assumptions you enter. Treat it as a range of outcomes, not a forecast.
Educational estimates based on your inputs; not advice. See the methodology and assumptions.