HomeMath View assumptions
U.S. home decision tool · Updated August 11, 2026

Rent vs Buy Calculator: Find Your Break-Even Point

A rent vs buy calculator should do more than compare rent with a mortgage payment. Enter your assumptions to see the projected break-even month, total housing costs, and estimated net worth from renting or buying over the time you expect to stay.

Local-only calculation Up to 40 years Transparent assumptions

Start with the decision

Compare renting and buying

Calculations run in your browser. No address, income, or personal financial data is sent to a server.

Scenario Use the same inputs for a quick range of outcomes.
Core inputs
$
Purchase price before closing costs.
$
Comparable monthly rent today.
%
A lower down payment may add PMI.
%
Fixed-rate estimate for the loan.
years
Common choices are 15 or 30 years.
years
The comparison horizon, up to 40 years.
% / year
A forecast assumption, not a promise.
% / year
Applied to rent as it compounds.
Advanced assumptionsTaxes, insurance, maintenance, opportunity cost
Buying and selling
%
Paid when you buy.
%
Estimated selling commission and costs.
% / year
Applied to projected home value.
% / year
Growth separate from home appreciation.
$/ year
Current annual premium.
% / year
Expected premium increase.
% of value / year
A planning allowance for repairs.
$/ month
Set to zero if there is no HOA.
% / year
Expected annual increase.
% / year
Used while equity is below the threshold.
% equity
The model stops PMI at this equity level.
Renting and opportunity cost
$/ month
Added to monthly rent.
months of rent
Assumed refundable at the end.
% / year
Reference only; results stay in future dollars.
% / year
Applied to unused cash and monthly savings.
Off by default. This is an estimate, not tax advice.

Your numbers stay in this browser. Share links include the assumptions in the URL.

Projection

Your rent vs. buy result

At your selected horizon Enter your assumptions to see the projection. The model compares net worth, not just the monthly payment.
Break-even—The first stable month when buying leads.
Buyer net worth—At the selected horizon.
Renter net worth—Down payment opportunity cost included.
Monthly mortgage—Principal and interest only.

Projected net worth

Home equity, sale costs, and invested cash are included.

BuyRent

Your projection chart will appear here.

Monthly housing cost

Costs can cross even when net worth does not.

Your monthly cost comparison will appear here.

Review assumptionsSee what changes the result

Read the result correctly

The cheapest monthly payment is not the whole decision.

Buying converts some cash flow into equity, while renting keeps the down payment liquid and investable. This calculator models both paths from the same starting cash and then shows the assumptions that drive the difference.

A three-minute workflow

How to use this rent vs buy calculator

Start simple, then open advanced assumptions when the baseline is clear.

  1. 01Enter comparable housing

    Use the home price, monthly rent, mortgage rate, down payment, and the years you realistically expect to stay.

  2. 02Add the costs people forget

    Include taxes, insurance, maintenance, HOA dues, selling costs, rent increases, and the return you could earn on retained cash.

  3. 03Run a range, not one answer

    Compare conservative, baseline, and optimistic assumptions. If the result flips, investigate the sensitive inputs before deciding.

How the model works

What this rent vs buy calculator includes

The model follows two households from the same starting point. The buyer uses the down payment and buying costs to purchase the home. The renter keeps an equivalent amount available for an investment account, less the refundable security deposit. Each month, whichever option has the lower housing cash outflow is credited with the difference as an investment contribution.

For the buyer, the projection includes principal and interest, property tax, homeowners insurance, maintenance, HOA dues, PMI when the modeled equity threshold has not been reached, and estimated selling costs at the end. For the renter, it includes rent, the annual rent increase, renter's insurance, and the opportunity cost of the cash that was not used to buy.

The result is a comparison of projected net worth. Buyer net worth includes the home value, less the remaining mortgage and estimated selling costs, plus any modeled investment balance. Renter net worth includes the investment account and the refundable deposit. Because a home is not a guaranteed investment, the answer should be read as a range, not as a recommendation.

Why opportunity cost matters

A down payment is not free simply because it becomes home equity. If you rent, that same cash could remain invested. The calculator therefore grows unused starting cash and monthly cash-flow differences at the after-tax investment return you enter. This is the part many simple rent-versus-mortgage comparisons leave out.

Use a time horizon you can defend

Short stays tend to make buying harder to justify because the upfront buying and selling costs have fewer years to spread out. A seven-year horizon may produce a different answer from a two-year horizon even with the same home price and rent. Test the shortest realistic stay, your baseline plan, and a longer stay before treating the result as useful evidence.

U.S. scope and sources

This version is designed for U.S. dollars and a simplified fixed-rate mortgage model. For tax concepts, review the IRS Publication 936 and consult a qualified professional for your situation. The calculator does not collect your values or provide financial, tax, mortgage, or legal advice.

Worked example

A result worth stress-testing

Illustrative values only; your inputs may produce a different result.

Example baseline assumptions and what they mean
InputExampleWhy it matters
Home price$450,000Sets the down payment, mortgage, tax, maintenance, and equity base.
Monthly rent$2,400Sets the first-year rental cash flow before annual increases.
Years to stay7 yearsSpreads upfront costs over the planned holding period.
Home appreciation / rent growth3% / 3%Both are forecasts; run lower and higher cases.
Investment return5%Models the value of cash retained by the renter or saved by the buyer.

Common questions

Rent vs. buy calculator FAQ

Is renting or buying always cheaper?

No. The answer depends on the time horizon, upfront costs, mortgage rate, home and rent growth, maintenance, selling costs, and the return available on cash that stays invested. A calculator can show a projection, not a universal rule.

What is the break-even point in a rent vs buy calculation?

Here, break-even is the first month when the buyer's projected net worth reaches or exceeds the renter's and stays essentially ahead for the following months in the modeled period. It is not simply the month when the mortgage payment becomes lower than rent.

Does this calculator include the opportunity cost of a down payment?

Yes. The renter starts with the cash that would have gone toward the down payment and buying costs, less the modeled refundable deposit. That balance grows at the after-tax investment return you enter.

Should I include property taxes, insurance, and maintenance?

Yes. Excluding recurring ownership costs can make buying look artificially attractive. Enter your best current estimates, then run a conservative scenario for taxes, insurance, repairs, and HOA increases.

Can I use this calculator for a specific city or state?

You can use local rent, price, tax, insurance, HOA, and closing-cost assumptions. This version does not automatically import city data, and it does not provide a state-specific tax opinion. Check the inputs against local listings, public tax records, lender estimates, and qualified professionals.

Does the calculator give tax advice?

No. The tax estimate is off by default and only provides a simplified scenario when enabled. Mortgage interest, property tax limits, itemization, filing status, and other rules can change the actual result. Review current IRS guidance and ask a qualified tax professional.

Educational estimate only. HomeMath's rent vs. buy calculator uses assumptions you provide. It does not predict market returns, guarantee home appreciation, approve a mortgage, or provide financial, tax, legal, or real-estate advice. Review the assumptions before relying on any output.