Compare the true 10-year cost of renting vs. buying. Find your break-even year and see which path builds more wealth.
Enter the details for both scenarios — your potential home's purchase price, down payment, mortgage rate, and ongoing costs, plus your current or estimated rent and how it increases annually. The calculator projects cumulative costs over 15 years and highlights the year at which buying becomes cheaper than renting on a total-cost basis.
The "invest the difference" toggle is important: if you rent, you keep your down payment invested. This calculator models that capital growing at 7% annually (a common long-run stock market assumption) to give a fair financial comparison of both paths.
Many first-time buyers underestimate ownership costs. Beyond the mortgage payment, homeowners pay property taxes (typically 0.5–2% of home value per year), homeowner's insurance (~$1,500/yr average), maintenance (budget 1–2% of home value annually for repairs and upkeep), and potentially HOA fees. Add in closing costs of 2–5% when buying and 6–10% when selling, and the hurdle for buying to make financial sense is significant.
Renting often wins when home prices are high relative to rents (price-to-rent ratio above 20), when you plan to move within 3–5 years, or when you can invest the down payment at returns that exceed home appreciation. Renting also provides flexibility — a major non-financial benefit that has real economic value during career transitions or life changes.
The break-even year is when the total cumulative cost of buying equals the total cumulative cost of renting. Before the break-even, renting is cheaper. After it, buying is cheaper. The exact year depends heavily on your local market, but nationally it tends to fall between year 4 and year 7. If you're planning to stay less than your break-even year, renting is almost always the smarter financial choice.