Buying a home involves significant upfront costs: down payment, closing costs, and months of higher monthly payments. The break-even point is when your cumulative cost of owning finally falls below the cumulative cost of renting. This calculator finds that exact year so you know the minimum time you need to stay for buying to make financial sense.
Detailed mode adds 4 more inputs including advanced assumptions.
(based on your current inputs and assumptions)
Renting wins for the entire calculated horizon, primarily because the opportunity cost of the down payment exceeds home appreciation in this scenario.
Home price
$450,000
The purchase price you entered.
Down payment
$90,000
Cash to close, before counting closing costs.
Monthly rent (year 1)
$2,200/mo
The comparable rent you used. Grows by the rent-increase assumption each year.
Break-even year
Never within 30 yrs
When cumulative buying cost first drops below cumulative renting cost.
This chart shows total dollars spent on each path, month by month. With your inputs and time horizon, renting stays ahead the entire time.
Math methodology last reviewed by Barron Hansen on