Rent vs. Buy Calculator
Compare the long-term wealth of buying a home versus renting and investing your cash down payment in the stock market. Find your exact financial breakeven year.
Opportunity Cost & Equity Modeler
Home Purchase Factors
Renting & Investment Alternate
When buying surpasses renting financially
Financial Comparison Analysis
help Frequently Asked Questions
What is the "breakeven horizon" in rent vs. buy calculations?
The breakeven horizon is the exact number of years you must live in a purchased home for the financial gains (equity accumulation and home price appreciation minus closing costs, taxes, and interest) to surpass renting and investing your down payment in the stock market.
What are the unrecoverable costs of buying a home?
Buying a home involves costs you never get back: mortgage interest payments, property taxes, homeowners insurance, HOA dues, and annual maintenance/repairs (recommended at 1% of home value annually), plus buying and selling transaction fees (6%–8%).
What is the opportunity cost of buying vs renting?
When you buy, you lock up a large lump sum in a down payment. When renting, that same down payment money can be invested in broad stock index funds (historically returning 7%–10% annually), which often compounds into substantial wealth.
How long should I plan to stay in a home before buying makes sense?
Financial experts typically recommend planning to stay in a home for at least 5 to 7 years. Moving sooner often results in a net financial loss due to high mortgage closing costs and real estate broker commissions.