Rent vs Buy Calculator

The break-even point is the number of years you need to stay in a home before buying becomes cheaper than renting. It typically ranges from 3-7 years, depending on home price, rent, interest rates, and appreciation. Use our calculator above to find your specific break-even point.

In the first 1-3 years, renting is typically cheaper because you avoid large upfront costs: down payment (10-20%), closing costs (2-5%), and the fact that early mortgage payments are mostly interest. On a $400,000 home with 20% down, your upfront cash is roughly $80,000-$100,000.

Our calculator includes: mortgage principal & interest, property taxes, homeowner's insurance (~0.35%), HOA fees, and maintenance (1-2% of home value annually). It also factors in closing costs when buying (~3%) and selling costs (~7% including commission).

Generally, no. If you plan to move within 3 years, renting is usually financially better. The transaction costs of buying and selling (5-10% of home value) typically outweigh any appreciation in such a short period. However, each market is different — use our calculator with your specific numbers.

Higher rent increases make buying more attractive sooner. If rents rise 5% annually, buying may break even in 3-4 years. If rents are stable (1-2% increase), the break-even point extends to 5-7 years. We use 3% as the default, which is the long-term average U.S. rent inflation.