Rent vs Buy
Calculator.
Is it cheaper for you to rent or buy?
We'll show you how many years it will take before the cost of buying
equals the cost of renting — the breakeven horizon.
Net Costs Over Years
| Year | Buy | Rent | Rent Gain |
|---|---|---|---|
| 3 | — | — | — |
Cost: —
Gain: —
Bottom line: —
With Beycome buyer program*
Get 2% back at closing — reduces your upfront cost and moves your break-even year earlier.
How to use this calculator.
The rent vs buy decision is one of the biggest financial choices you'll make. This calculator compares the true net cost of each path — including equity, investment returns, and all hidden ownership costs.
Enter the home price and your down payment
Use the actual asking price or your budget. Your down payment percentage determines both your loan amount and the opportunity cost — the returns you forgo by not investing that money.
Set your mortgage rate, tax rate, and ownership costs
Property tax (national average ~1.1%), homeowner's insurance (~$1,500/yr), maintenance (budget 1% of home value/yr), and HOA fees are all factored in. These hidden costs often add $600–$1,200/month beyond the mortgage payment.
Enter your comparable rent and annual rent increase
Use what you would actually pay to rent a comparable home in the same neighborhood — not your current rent. Rent inflation (historically 3–4%/yr nationally) compounds against renters over time and is a major factor in the break-even calculation.
Set how long you plan to stay
This is the single most important variable. Buying has high upfront costs that take years to recover. If you stay fewer than 4 years, renting almost always wins. Beyond 7–10 years, buying typically wins decisively. The break-even year is where those two paths cross.
Read the break-even year and switch to year-by-year view
The Summary tab shows your break-even year and net cost comparison at your chosen horizon. The Year-by-Year chart shows both lines so you can see exactly when they cross. The Full Breakdown table gives every year in detail.
Explore more smart calculators.
Every major financial decision in your home journey — covered.
Affordability calculator
See how much house you can actually afford.
Mortgage payoff calculator
See how extra payments cut years off your loan.
Amortization calculator
See exactly where every mortgage dollar goes.
Mortgage comparison calculator
Compare two loan offers side by side.
Down payment calculator
Estimate the cash you'll need upfront.
Closing cost calculator
Know every fee before you sign.
FHA mortgage calculator
Estimate your full monthly FHA payment including MIP.
Debt-to-income calculator
Find your DTI ratio and which loans you qualify for.
Market trends
Real-time housing market data — city, county, state.
The real math behind rent vs. buy.
Most people compare the wrong numbers. They look at monthly mortgage vs. monthly rent and ignore three critical factors: upfront costs, hidden ownership costs, and the opportunity cost of the down payment. Understanding how to get a mortgage is the first step to making an informed decision.
The true cost of buying
On a $400,000 home with 20% down at 6.1%: monthly mortgage is ~$1,940. But add property tax ($367/mo at 1.1%), insurance ($125/mo), and maintenance ($333/mo at 1%/yr), and the true monthly cost is $2,765/month — not $1,940. Amortization means most of your early payments go to interest, not principal.
You also pay $80,000 down + $12,000 in closing costs on day one — $92,000 before making a single mortgage payment.
The true cost of renting
Renting at $1,800/month looks cheaper — and it is, in year one. But rent increases ~3%/year. By year 10, that same apartment costs ~$2,418/month. Meanwhile, your mortgage payment stays fixed (if you chose a fixed rate). Rent inflation is the slow erosion that makes buying increasingly attractive over time.
The renter's advantage: that $92,000 upfront cost, invested at 6%/year, grows to ~$165,000 in 10 years. This opportunity cost is real — and our calculator factors it in. Learn more about home equity lines of credit for ways to access equity later.
How the break-even is calculated
Net cost to buy at year N = all cash paid (mortgage + tax + insurance + maintenance + HOA + upfront costs) minus home equity (appreciation + principal paydown) plus estimated selling costs (3% with Beycome).
Net cost to rent at year N = all rent paid minus investment portfolio (down payment + monthly savings invested at your chosen return rate).
The break-even year is when net cost to buy drops below net cost to rent. Beyond that year, every additional year you own, buying gets further ahead. Choosing between a 15-year vs 30-year mortgage significantly affects this timeline.
A real comparison: $400,000 home vs. $1,800/month rent
At Year 3
Renting wins
High upfront costs haven't been recovered. Net cost to buy ~$85k vs renting ~$30k.
At Year 7
Equity builds, rent inflation adds up. The two paths start converging fast.
At Year 12+
Buying wins
Equity is substantial, rent has risen 43%, fixed mortgage stays the same.
Resources.
Everything you need to make a confident rent vs. buy decision.
