The decision to rent or buy is rarely as simple as comparing a monthly rent payment to a monthly mortgage payment. Buying involves massive upfront sunk costs (closing costs, down payment) and ongoing unrecoverable costs (taxes, insurance, maintenance, interest). Renting involves paying a landlord, but allows you to invest your down payment elsewhere. This calculator does the complex math to find your 'break-even' point—the year when buying finally becomes the better financial decision.
Important
The Opportunity Cost of the Down Payment
If you put $50,000 down on a house, that money is no longer earning 7% in the stock market. A true rent vs. buy calculation must account for the lost investment returns on your down payment.
The Calculator
Input your current rent, target home price, expected down payment, and how long you plan to stay in the home to see your break-even analysis.