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Rent vs Buy: Break-Even Calculator

Find out whether renting or buying makes more financial sense for your situation

Renting Costs

Monthly Rent ($)
Security Deposit (Months of Rent)
Renter’s Insurance (Monthly) ($)
Broker Fee ($)
Annual Rent Increase (%)

Buying Costs

Purchase Price ($)
Down Payment (%)
Loan Term (Years)
Interest Rate (%)
Closing Costs (%)
Property Tax Rate (%)
Homeowner’s Insurance (Annual) ($)
HOA Fees (Monthly) ($)
PMI (Monthly) ($)
Additional Utilities (Monthly) ($)
Repairs & Maintenance (Annual) ($)
Selling Costs (%)
Home Appreciation (Annual %)

Financial Assumptions

Time Period (Years)
Annual Rate of Return (%)
Marginal Tax Rate (%)
Capital Gains Tax Rate (%)
General Inflation Rate (%)

Results Summary

Recommendation
Calculate to see results
Monthly Cost Difference
$0
Total Cost Difference Over Period
$0
Break-Even Point (Years)
0

Detailed Cost Breakdown

Renting Costs
Buying Costs
Initial Costs: $0
Initial Costs: $0
Recurring Costs: $0
Recurring Costs: $0
Opportunity Costs: $0
Opportunity Costs: $0
Net Proceeds: $0
Net Proceeds: $0
Total: $0
Total: $0

Key Considerations

Break-Even Analysis
Generally, buying becomes more cost-effective the longer you stay in one place
Key Factors
• Home appreciation rates significantly impact the buy vs rent decision
• Tax benefits of homeownership vary based on your tax situation
• Consider your lifestyle flexibility needs
Other Considerations
• Down payment opportunity cost
• Transaction costs when buying/selling
• Maintenance responsibilities and costs

Stop Guessing – Calculate Your Real Break-Even Point

The rent vs buy decision isn’t just about monthly payments. Our comprehensive calculator factors in appreciation, tax benefits, closing costs, maintenance, and opportunity costs to show you the true financial impact of each choice.

Why Most People Get This Decision Wrong:

  • They only compare monthly rent to mortgage payments
  • They ignore closing costs and transaction fees
  • They forget about maintenance and repair costs
  • They overlook tax deductions and appreciation
  • They don’t consider opportunity cost of the down payment

What This Calculator Actually Reveals

Our tool goes beyond basic comparisons to calculate:

  • True break-even timeline accounting for all costs and benefits
  • Net worth impact of renting vs buying over time
  • Opportunity cost analysis of your down payment invested elsewhere
  • Tax savings from mortgage interest and property tax deductions
  • Total cost of ownership including maintenance, HOA, and insurance

Key Insights You’ll Discover:

  • How long you need to stay to make buying worthwhile
  • Whether your down payment could earn more in other investments
  • Real monthly cost difference after taxes and appreciation
  • When renting actually makes more financial sense

The Real Estate Investor’s Advantage

Smart investors use this analysis for more than just personal housing decisions. Understanding rent vs buy dynamics helps you:

  • Identify markets where buying makes compelling sense
  • Find areas with strong rental demand from priced-out buyers
  • Spot opportunities where others are making emotional decisions

🎯 Level Up Your Investment Strategy: Upgrade to Pro for market data that reveals where rent vs buy math favors investors—including areas with high rent-to-price ratios perfect for rental properties.

Pro members discover:

  • Markets where buying beats renting by the widest margins
  • Areas with strong rental demand from potential buyers
  • Price-to-rent ratio analysis across hundreds of markets
  • Investment opportunities in transitional neighborhoods

Make Smarter Housing and Investment Decisions

Whether you’re deciding where to live or where to invest, the numbers don’t lie. Use this calculator to cut through the emotions and focus on financial reality.

💡 Pro Tip: Markets where buying strongly outperforms renting often signal emerging investment opportunities as more renters get priced out.

Calculate clearly. Decide confidently. Invest strategically.

August 15, 2025

In STR Calculators