NumberTally Rent vs Buy Calculator
Compare the true cost of buying a home versus renting over any time horizon — with taxes, insurance, maintenance, appreciation, and selling costs all accounted for — and find your breakeven year.
Advanced options
Grows with the home’s value each year.
The 1% rule: budget ~1% of the home’s value yearly.
Agent commissions + closing costs when you sell.
Why the breakeven year matters more than the monthly payment
A mortgage payment is often close to rent, which makes buying look like a tie. It isn’t — because the costs are shaped completely differently. Buying front-loads costs (down payment, closing, selling fees) and back-loads benefits (each payment builds equity; the payment stays fixed while rents rise). Renting has almost no upfront cost but never builds anything. The first few years almost always favor renting; the longer you stay, the more the math tilts toward buying. The breakeven year — where the two cumulative cost lines cross — is the single number that captures this.
The costs people forget on each side
Buyers forget maintenance (the 1% rule: about 1% of the home’s value per year), rising property taxes, HOA dues, and the ~6% haircut when selling. Renters forget rent inflation — 3% a year turns $2,200 into nearly $2,950 in a decade. This calculator includes all of them, and grows taxes, maintenance, and rent with the assumptions you set, so the comparison stays honest over 30 years.
Frequently Asked Questions
Is buying always better if I stay long enough?
Not always, but usually. With typical appreciation and rent inflation, buying wins over long horizons because the mortgage payment is fixed while rent compounds. Very high HOA dues, flat home prices, or cheap rent can keep renting ahead — run your numbers.
What is the breakeven year?
The first year where the total net cost of buying (down payment + all monthly costs − equity you’d walk away with) drops below total rent paid. If you’ll move before then, renting likely wins.
Do you count the down payment as a cost?
Yes — it’s cash out of pocket on day one. But it isn’t lost: when you sell, the equity (down payment + principal paid + appreciation, minus selling costs) comes back to you, which is why the net buying cost can go negative over long horizons.
What about the opportunity cost of the down payment?
A fair point: invested elsewhere, the down payment could earn returns. This calculator doesn’t model that — it compares out-of-pocket housing costs. If you’d invest the difference aggressively, the breakeven year moves later.
How accurate is the appreciation assumption?
It’s the biggest uncertainty. US homes have averaged roughly 3–4% annually over long periods, but any single 7-year stretch can differ wildly. Try 0% and 5% to see how sensitive your breakeven is.