Free rent vs buy calculator
Compare renting versus buying a home — enter purchase price, mortgage rate, and monthly rent to find the break-even year and long-term cost comparison, updated live, as you type.
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Uses default assumptions for appreciation, taxes, maintenance. Actual outcomes vary by location and market conditions. Not financial advice.
Results are estimates. Consult a professional.
How the rent vs. buy calculator works
The calculator computes total cost of ownership for both paths over a specified number of years, then finds the break-even year — the point at which the cumulative cost of buying falls below the cumulative cost of renting. Before break-even, renting is cheaper; after it, buying wins on pure cost.
Worked example: $350,000 home vs. $2,200/month rent
Taylor is deciding between buying a $350,000 home with 5% down ($17,500) at a 7% mortgage rate (30-year fixed) and renting a comparable apartment for $2,200/month. Assuming 3% annual home appreciation, 3% annual rent inflation, 1.25% property tax, 0.5% insurance, and 1% maintenance, when does buying break even with renting?
Estimated break-even years by home price and monthly rent
Break-even estimates below assume 7% mortgage rate, 20% down payment, 3% annual home appreciation, 3% annual rent inflation, and standard costs (1.25% property tax, 0.5% insurance, 1% maintenance). A lower down payment, higher rate, or slower appreciation extends the break-even period.
| Home Price | $1,500/mo Rent | $2,000/mo Rent | $2,500/mo Rent | $3,000/mo Rent |
|---|---|---|---|---|
| $250,000 | 9 years | 6 years | 4 years | 3 years |
| $350,000 | 13 years | 8 years | 6 years | 4 years |
| $450,000 | Never* | 11 years | 7 years | 5 years |
| $600,000 | Never* | Never* | 10 years | 7 years |
* 'Never' means buying does not break even within a 30-year horizon under these assumptions. Source: Calculator estimates based on standard cost inputs. Actual break-even depends on your specific rate, taxes, and local appreciation.
Tips for the rent vs. buy decision
The break-even calculation is necessary but not sufficient. These five factors frequently tip the decision in ways the pure math does not capture.
- Match your horizon to the break-even year — If you are likely to move within five years, renting almost always wins financially because closing costs alone (2–5% of purchase price) take years to recoup through equity. Only commit to buying if your timeline exceeds the break-even year.
- Account for PMI if your down payment is under 20% — Private mortgage insurance costs 0.5–1.5% of the loan amount per year until you reach 20% equity. On a $350,000 loan that is $1,750–$5,250 per year — a significant cost that extends your break-even.
- Model maintenance honestly — The 1% annual rule is a starting point; older homes and single-family houses often run 1.5–2%, while new condos may cost less. HVAC replacement ($8,000–$15,000), roof ($10,000–$20,000), and water heater ($1,500) are lumpy, unpredictable costs that renters avoid entirely.
- Factor in the mortgage interest deduction — If you itemize deductions and your mortgage interest exceeds the standard deduction threshold, the after-tax cost of buying is lower. Run the after-tax analysis — not just the gross payment.
- Consider non-financial factors separately — Stability, schools, pets, renovation freedom, and forced savings through equity are real benefits of homeownership that the break-even model ignores. Weigh those consciously rather than letting them default into the financial analysis.
Accuracy and limitations
Break-even estimates are highly sensitive to assumed home appreciation and rent inflation rates — small changes in these inputs can shift the break-even year by several years. The model also assumes the homeowner stays for the full period with no refinancing, no major capital improvements, and no job-driven relocation. Real estate transaction costs (agent commissions, closing costs, transfer taxes) typically add 8–10% of the home price spread across the buy-in and eventual sale, and are included in the closing cost inputs but may need adjustment for your specific market.
Not financial advice — consult a financial professional for your specific situation.
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