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· 37 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. Defaults assume US-style 30-year fixed mortgage and conventional property tax / HOA structure — adjust the inputs for Canadian, UK, or other markets. 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

Disclaimer: For informational purposes only. This is not financial, tax, or legal advice — consult a licensed professional before making decisions.

Frequently Asked Questions

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Frequently Asked Questions

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