Rent vs Buy Break Even Calculator
Rent vs Buy Break Even
Calculate how long it takes for buying to break even versus renting
Formula
Break Even = Year when cumulative rent exceeds cumulative ownership costs minus equity
Frequently Asked Questions
How long until buying is cheaper than renting?
Typically 5-7 years, depending on home prices, mortgage rates, and local rent increases.
What costs are included in ownership?
This includes mortgage payment, property taxes (1.2%), and insurance/maintenance (0.5%).