Rent vs. Buy Break-Even Calculator
Find the exact year buying beats renting for your net worth.
Open the Interactive CalculatorHow It's Calculated
Buy Net Worth = Home Value × (1 − Selling Costs) − Remaining Loan Balance.
Rent Net Worth = Down Payment + Closing Costs invested at your return rate, plus the monthly savings (when renting is cheaper than owning) invested every month thereafter.
Example
Example: renting at $2,200/month versus buying a $420,000 home with 20% down at 6.5% — with rent rising 3%/year and the down payment plus any savings invested at 7%, the invested down payment initially grows faster than home equity. Buying only pulls ahead once appreciation and paydown compound enough to overtake it, which at these defaults lands around year 17. Lower investment return assumptions or higher home appreciation will pull that break-even year earlier.
Frequently Asked Questions
What costs does the "buy" scenario include?
Principal & interest, property tax, insurance, 1% annual maintenance, and a 6% selling cost applied when calculating net worth.
Does this account for tax deductions?
No — mortgage interest deduction and other tax effects are not modeled; results are a simplified net-worth comparison.