Compare the true long-term cost of renting versus buying a home. See when buying breaks even and how much equity you could build over time.
Total Rent Cost
$302,646
Total Own Cost
$417,266
Equity Built
$307,537
Break-even Year
Year 1
📌 How Break-even Year is Calculated
Break-even Year 1 does not mean buying is cheaper than renting from day one. It means that by Year 1, the equity you've built ($307,537) exceeds the extra cash you've spent on ownership versus renting. Total out-of-pocket costs are still higher for buyers early on — but equity is a real asset you'd recoup upon selling. This calculation assumes you sell or refinance at the end of the period.
Based on: the default rate is the Freddie Mac Primary Mortgage Market Survey 30-year average, retrieved through FRED: 7.03%, as of September 24, 2026. By default, rent rises 3% a year and the home's value rises 3.5% a year; you can change both. Page last reviewed November 8, 2026. See the methodology for formulas and sources.
Assumptions: 30-year fixed rate; property tax and insurance stay flat each year; PMI is not included; the down payment earns no investment return; maintenance, closing and selling costs are not included; no tax effects. Results are estimates, not advice or a loan quote.
The core question in any rent vs. buy analysis is: how long until buying becomes cheaper than renting? This break-even point depends on your local market, home appreciation rate, rent growth, mortgage rate, and how long you plan to stay. The break-even point can take many years in expensive markets and come sooner in affordable ones. Try your own numbers in the calculator above.
The common claim that renting is wasted money ignores the investment opportunity cost of a down payment. If you rent and invest your down payment instead, that capital could generate significant returns. Renting also provides flexibility and avoids maintenance costs, property taxes, and the transaction costs of buying and selling.
In a market with strong home appreciation (3–5%+ annually), buying tends to come out ahead over long time horizons, but not always. It depends on rent, prices and how long you stay. In flat or declining markets, renting and investing can outperform buying. Use this calculator to model different appreciation scenarios and see how sensitive the outcome is to your specific assumptions.
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