Rent vs Buy Break-Even Calculator Compare buying with renting and investing under your own assumptions
🏠 Buying Parameters
$
20%
6.5%
30 yrs
4%
6000 $
1%
2%
6%
$
🏘️ Renting Parameters
$
3%
7%
📅 Simulation Period
20 yrs
🎯 Break-Even Point
Buying beats renting after year 8
After 8 years, buying accumulates more net worth than renting + investing
Year 20 Summary
| 🏠 Buy | 🏘️ Rent & Invest | |
|---|---|---|
| Total Costs | 991,631 $ | 806,111 $ |
| Final Net Worth | 807,167 $ | 658,682 $ |
📊 Yearly Breakdown
| Year | Home Value | Loan Balance | Mortgage Paid | Tax + Maintenance | Rent Paid | Rent Saving | 🏠 Final Net Worth | 🏘️ Final Net Worth |
|---|---|---|---|---|---|---|---|---|
| 1yr | 520,000 $ | 395,529 $ | 30339.27 $ | 11200.00 $ | 30000.00 $ | 11539.27 $ | 93,271 $ | 129,239 $ |
| 2yr | 540,800 $ | 390,759 $ | 30339.27 $ | 11408.00 $ | 30900.00 $ | 10847.27 $ | 117,593 $ | 149,133 $ |
| 3yr | 562,432 $ | 385,669 $ | 30339.27 $ | 11624.32 $ | 31827.00 $ | 10136.59 $ | 143,017 $ | 169,709 $ |
| 4yr | 584,929 $ | 380,238 $ | 30339.27 $ | 11849.29 $ | 32781.81 $ | 9406.75 $ | 169,595 $ | 190,996 $ |
| 5yr | 608,326 $ | 374,444 $ | 30339.27 $ | 12083.26 $ | 33765.26 $ | 8657.27 $ | 197,383 $ | 213,023 $ |
| 6yr | 632,660 $ | 368,261 $ | 30339.27 $ | 12326.60 $ | 34778.22 $ | 7887.64 $ | 226,438 $ | 235,822 $ |
| 7yr | 657,966 $ | 361,665 $ | 30339.27 $ | 12579.66 $ | 35821.57 $ | 7097.36 $ | 256,823 $ | 259,427 $ |
| 8yr | 684,285 $ | 354,627 $ | 30339.27 $ | 12842.85 $ | 36896.22 $ | 6285.89 $ | 288,601 $ | 283,872 $ |
| 9yr | 711,656 $ | 347,117 $ | 30339.27 $ | 13116.56 $ | 38003.10 $ | 5452.72 $ | 321,839 $ | 309,196 $ |
| 10yr | 740,122 $ | 339,105 $ | 30339.27 $ | 13401.22 $ | 39143.20 $ | 4597.29 $ | 356,610 $ | 335,437 $ |
| 11yr | 769,727 $ | 330,555 $ | 30339.27 $ | 13697.27 $ | 40317.49 $ | 3719.04 $ | 392,988 $ | 362,637 $ |
| 12yr | 800,516 $ | 321,434 $ | 30339.27 $ | 14005.16 $ | 41527.02 $ | 2817.41 $ | 431,052 $ | 390,839 $ |
| 13yr | 832,537 $ | 311,701 $ | 30339.27 $ | 14325.37 $ | 42772.83 $ | 1891.81 $ | 470,884 $ | 420,089 $ |
| 14yr | 865,838 $ | 301,316 $ | 30339.27 $ | 14658.38 $ | 44056.01 $ | 941.64 $ | 512,571 $ | 450,437 $ |
| 15yr | 900,472 $ | 290,237 $ | 30339.27 $ | 15004.72 $ | 45377.69 $ | -33.71 $ | 556,207 $ | 481,934 $ |
| 16yr | 936,491 $ | 278,415 $ | 30339.27 $ | 15364.91 $ | 46739.02 $ | -1034.85 $ | 601,887 $ | 514,635 $ |
| 17yr | 973,950 $ | 265,801 $ | 30339.27 $ | 15739.50 $ | 48141.19 $ | -2062.43 $ | 649,712 $ | 548,597 $ |
| 18yr | 1,012,908 $ | 252,342 $ | 30339.27 $ | 16129.08 $ | 49585.43 $ | -3117.08 $ | 699,791 $ | 583,881 $ |
| 19yr | 1,053,425 $ | 237,983 $ | 30339.27 $ | 16534.25 $ | 51072.99 $ | -4199.48 $ | 752,236 $ | 620,554 $ |
| 20yr | 1,095,562 $ | 222,661 $ | 30339.27 $ | 16955.62 $ | 52605.18 $ | -5310.30 $ | 807,167 $ | 658,682 $ |
📋 Calculation Assumptions
- Buy net worth = Home value − Remaining loan − Selling costs − All cumulative costs + Down payment
- Rent net worth = Investment portfolio − Cumulative rent paid (down payment invested from day 1)
- Monthly cost difference (buy cost − rent) is added/subtracted from the renter's investment portfolio
- For reference only. Actual results depend on taxes, inflation, and personal financial situation.
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Rent vs Buy Break-Even Calculator - When Does Buying Beat Renting?
Buying a home is one of the biggest financial decisions of your life. This tool uses the same starting capital for both sides — simulating both "buy" and "rent & invest" strategies — to precisely calculate how many years until buying becomes the better financial choice. Supports ready-to-move-in, resale, and pre-sale modes.
🏠 Core Features
- Break-Even Year: Exact year when buying net worth surpasses renting + investing
- Pre-sale Mode: Simulates deposit + construction installments, with mortgage starting after delivery
- Target Price Mode: Input your target year and price to auto-calculate implied annual growth
- Rental Income: Set rental income and reinvestment return to factor into buyer's final asset
- Yearly Breakdown: Home value, loan balance, tax & maintenance, rent paid — all at a glance
📊 Calculation Logic
- Equal Starting Point: Both sides start with the same capital (down payment + transaction costs)
- Buy Net Worth = Home value − Loan balance − Selling costs − Cumulative extra payments
- Rent Net Worth = Portfolio (initial capital compounded + annual savings reinvested) − Cumulative rent
- Home price & rent: Home value is measured at each year-end; rent starts at the entered amount in year 1 and grows from year 2
Is buying or renting cheaper if home prices stay flat?
Set annual home-price growth to 0 and keep mortgage rates, rent, ownership costs and investment returns fixed. Compare the yearly net-worth results over 5, 10 and 20 years. Buying still incurs interest, taxes and maintenance; renting allows investment of the same starting capital and spending difference. Flat home prices alone do not determine which option wins.
💡 Usage Tips
- Set investment return to 5-7% to simulate long-term stock market average
- Compare ready homes and pre-sale purchases with the same price and rent assumptions, then vary delivery time, deposit and construction payments. There is no fixed delay in the break-even year.
- Homeownership has non-financial value (stability, no landlord) — this tool covers the financial side only