Buy vs Rent Breakeven Years
Years until total ownership cost (mortgage + property tax + maintenance + opportunity) equals total rent.
Result
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How to use this calculator
- Enter home price + financing terms.
- Enter equivalent rent cost.
- Adjust appreciation + opportunity rate.
About this calculator
Buy vs. rent breakeven: years to recoup the up-front cost of buying through avoiding rent + building equity + appreciation. Typical US: 5-7 years. Faster appreciation (6%+/yr) shortens breakeven; high mortgage rates lengthen it. Always include opportunity cost on down payment (could be invested at 7%/yr S&P 500). Don't buy if you might move within 3 years — closing costs dominate.
Frequently asked
Why opportunity cost?+
Down payment in S&P would compound. Honest comparison subtracts that earning potential from buy side.
5/1 ARM vs. 30-yr fixed?+
5/1 lower rate but rate-resets after 5 years. ARM helps if you expect to move/refi within 5-7 years.
Tax deduction?+
Mortgage interest + property tax deductible if itemized. Standard deduction $14,600 (2025 single) often wins.
PMI cost?+
Down <20%: ~0.5-1% of loan/year until 20% equity. Adds $1500-3000/yr to ownership cost.
Maintenance %?+
1-2% of home value/yr is realistic. Older homes: higher. New construction: lower (warranty period).
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