What is the breakeven period?

The number of years after which buying becomes cheaper than renting, accounting for the opportunity cost of the down payment. Below the breakeven, renting wins; above it, buying wins.

What does 'opportunity cost' mean?

The investment return you give up by putting your down payment into a house instead of stocks or bonds. This calculator assumes the down payment would otherwise earn your chosen investment return rate.

Why doesn't this account for home price appreciation?

It does — home appreciation is factored as an offsetting gain against buying costs. Set appreciation to zero to see the 'cost only' comparison, or use historical long-term average (~3–4% nominal).

Rent vs Buy Calculator

Finance· 18 tools

Free rent-vs-buy calculator. Enter home price, down payment, mortgage rate, rent, and how long you plan to stay to see a breakeven comparison. Factors in mortgage interest, property tax, maintenance, HOA, rent inflation, and opportunity cost of the down payment invested elsewhere. Helps decide whether buying makes financial sense for your timeline.

Home price

Down payment (%)

Mortgage rate (%)

Loan term (years)

Monthly rent

Rent increase/year (%)

Property tax (%/year)

Maintenance (%/year)

HOA (monthly)

Home appreciation (%/yr)

Investment return (%/yr)

Years staying

Assumes renter invests the equivalent down payment at the investment return rate. Excludes closing costs, selling costs, and tax deductions.

Over 10 years

Buying wins

by $26,616

Net cost of buying

$216,334

Net cost of renting

$242,950

Breakeven year

Year 4

Frequently Asked Questions

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