Rent vs Buy Calculator

Rent vs buy home calculator: mortgage, rent inflation, appreciation, and opportunity cost. See break-even year and which path builds more wealth.

How it works

Compare net wealth from renting (investing the down payment) vs buying (equity minus mortgage, taxes, maintenance). Break-even year is when buying pulls ahead — it depends on how long you stay, mortgage rate, rent inflation, and home appreciation. A $400k home with 7% mortgage and 3% rent growth might not beat renting until year 8–12 in some markets.

Frequently asked questions

When does buying a home beat renting mathematically?

Buying often wins if you stay past the break-even year, appreciation and rent inflation are high, and your alternative investment return is modest. Short stays, high transaction costs, or very low rent favor renting — the calculator shows your break-even year explicitly.

What is opportunity cost of the down payment?

If you rent, that down payment could compound in stocks or bonds instead of sitting in home equity. We model an alternative return on cash not locked in the house — higher market returns make renting look better all else equal.

Should I include home appreciation and rent inflation?

Yes — they often decide the winner. Underestimating rent growth makes buying look early; assuming high appreciation favors buying. Use conservative and optimistic scenarios in the sliders.

Does this replace personalized real estate advice?

No — it is an educational model. Taxes, emotional factors, school districts, and local regulations still matter. Use the output as a quantitative starting point for your own decision.

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