Rent vs. Buy Calculator
Stop guessing. See the year your purchase actually beats renting, with sensitivity bands so you know which assumptions matter most.
How Long Will You Stay?
If You Buy
If You Rent
Market & Tax Assumptions
Verdict
Break-even
Year 10
Buying breaks even at year 10, but you only plan to stay 7. Renting wins for your timeline.
At year 7
Year-1 monthly cost
P&I $2,102 on a $320,000 loan
Forced sale at year 3: Buyer behind by $33,226
If life forces an early move, buying often loses to renting because closing and selling costs haven't been amortized.
Buy Advantage Over Time
Net worth difference (buyer minus renter) at each potential exit year. Above zero = buying wins. The crossing point is your break-even.
Net Worth: Buyer vs. Renter
What each household is worth at each potential exit year. Both started with the same cash; the renter invested the down payment instead of spending it.
Which Assumptions Move the Answer?
How the break-even shifts when each assumption moves by one band. Bigger swings = more sensitive answer. Pay attention to the inputs that flip the result.
| Assumption | Lower | Base | Higher |
|---|---|---|---|
| Home appreciation | 2.0% BE: 16 | 3.0% BE: 10 | 4.0% BE: 6 |
| Rent growth | 2.0% BE: 14 | 3.0% BE: 10 | 4.0% BE: 8 |
| Investment return | 3.0% BE: 7 | 5.0% BE: 10 | 7.0% BE: 22 |
| Mortgage rate | 5.9% BE: 6 | 6.9% BE: 10 | 7.9% BE: 17 |
Scenario Comparison
Same purchase, three views of the future.
Pessimistic
Yr 15
break-even
At year 7: -$55,633
Lower appreciation, faster rent growth
Base
Yr 10
break-even
At year 7: -$16,191
Your inputs as entered
Optimistic
Yr 5
break-even
At year 7: +$27,910
Higher appreciation, slower rent growth
How This Works
We simulate month-by-month for 30 years. Both households start with the same cash. The buyer spends it on down payment and closing; the renter invests it in a brokerage at your chosen return rate.
Each month, whoever has the lower housing cost invests the difference. Owner expenses grow with inflation (insurance, HOA) or appreciation (property tax, maintenance). Rent grows at your specified rent-growth rate.
At each potential exit year, the buyer's net worth equals their portfolio plus net sale proceeds (home value minus selling costs and remaining loan). The renter's net worth is just their portfolio. Where the curves cross is your break-even.
The mortgage interest deduction is applied as an annual itemized-vs-standard comparison, with the SALT property-tax deduction capped at $10,000.