Rent vs Buy Break-Even Calculator When does buying a home start to beat renting? Find out instantly.
🏠 Buying Parameters
$
20%
2%
30 yrs
2%
1.5 $
0.1%
1.5%
1%
$
🏘️ Renting Parameters
$
2%
5%
📅 Simulation Period
20 yrs
🎯 Break-Even Point
Renting + investing stays ahead throughout
Under your parameters, renting and investing outperforms buying. Consider waiting.
Year 20 Summary
| 🏠 Buy | 🏘️ Rent & Invest | |
|---|---|---|
| Total Costs | 0 $ | 0 $ |
| Final Net Worth | 0 $ | 0 $ |
📊 Yearly Breakdown
| Year | Home Value | Loan Balance | Mortgage Paid | Tax + Maintenance | Rent Paid | Rent Saving | 🏠 Final Net Worth | 🏘️ Final Net Worth |
|---|
📋 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.
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: Year 1 stays at base value; growth starts from year 2
💡 Usage Tips
- Set investment return to 5-7% to simulate long-term stock market average
- Pre-sale buyers pay rent during construction, so break-even is typically 2-4 years later than ready homes
- Homeownership has non-financial value (stability, no landlord) — this tool covers the financial side only
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