Break-even month
Not reached
Rent vs Buy Break-Even Calculator
Model a high-stakes housing decision with explicit assumptions. Compare buy-side equity and renter-side investment path across monthly cashflow, transaction costs, and scenario bands.
Break-even output
Net advantage at horizon
-$10,180.17
Buyer equity at horizon
$296,897.45
Renter investment at horizon
$307,077.63
Horizon Wealth Snapshot
Compare cash outflow, buyer equity, and renter invested balance.
Buyer cumulative outflow
$548,926.59
Renter cumulative outflow
$362,564.79
Buyer equity @ horizon
$296,897.45
Renter investment @ horizon
$307,077.63
Yearly Buy vs Rent Trajectory
Follow equity and net advantage through the analysis horizon.
Y1Y6Y10
Buyer equity if sold
$296,897.45
Renter investment balance
$307,077.63
Net advantage (buy - rent)
-$10,180.17
Includes all assumptions
Scenario band
| Scenario | Break-even | Net advantage @ horizon |
|---|---|---|
| conservative | Not reached | -$109,547.60 |
| base | Not reached | -$10,180.17 |
| optimistic | 56 mo | $92,378.17 |
Yearly timeline snapshot
| Year | Buyer outflow (month) | Rent (month) | Equity if sold | Renter investment | Buy - Rent |
|---|---|---|---|---|---|
| 1 | $3,492.37 | $2,671.41 | $89,012.02 | $132,308.26 | -$43,296.24 |
| 2 | $3,520.69 | $2,751.55 | $108,750.00 | $150,024.95 | -$41,274.95 |
| 3 | $3,549.87 | $2,834.10 | $129,245.33 | $168,155.67 | -$38,910.35 |
| 4 | $3,579.92 | $2,919.12 | $150,530.90 | $186,705.80 | -$36,174.91 |
| 5 | $3,610.87 | $3,006.70 | $172,641.24 | $205,680.45 | -$33,039.21 |
| 6 | $3,642.75 | $3,096.90 | $195,612.59 | $225,084.43 | -$29,471.85 |
| 7 | $3,675.58 | $3,189.81 | $219,482.95 | $244,922.23 | -$25,439.28 |
| 8 | $3,709.41 | $3,285.50 | $244,292.26 | $265,197.97 | -$20,905.71 |
| 9 | $3,744.24 | $3,384.06 | $270,082.42 | $285,915.35 | -$15,832.93 |
| 10 | $3,780.12 | $3,485.59 | $296,897.45 | $307,077.63 | -$10,180.17 |
Warnings
- Buying does not break even within the selected analysis horizon.
Assumption highlights
Down payment $100,000.00 | Closing costs $15,000.00 | Horizon 10 years
US buyers
Mortgage rates, property tax variance, and low-down-payment assumptions can shift break-even by years.
EU renters
Long-horizon rent growth versus transaction costs often drives the turning point more than nominal rate alone.
Global agents
Use deterministic schema outputs for reproducible housing planning workflows.
How To Use This Calculator
- Enter home price, down payment, mortgage rate, loan term, and current rent.
- Set analysis horizon in years for break-even and scenario results.
- Refine tax, insurance, maintenance, HOA, and transaction-cost assumptions.
- Set rent growth, home appreciation, and investment return expectations.
- Compare break-even month, horizon net advantage, and scenario band outputs.
- Save a shareable link with your assumptions, then run one conservative and one optimistic scenario before deciding.
For AI Agents (Optional)
Human mode is default. You can ignore this section unless you use AI agents or structured automation.
Agent Contract
Contract: rent_vs_buy_break_even v1
{
"tool": "rent_vs_buy_break_even",
"home_price": 500000,
"down_payment_percent": 20,
"mortgage_rate_percent": 6.0,
"loan_term_years": 30,
"monthly_rent": 2600,
"rent_growth_percent": 3,
"home_appreciation_percent": 3,
"property_tax_percent": 1.2,
"annual_home_insurance": 1800,
"annual_maintenance_percent": 1.0,
"hoa_monthly": 0,
"closing_costs_percent": 3,
"selling_costs_percent": 6,
"investment_return_percent": 6,
"analysis_years": 10
} Frequently Asked Questions
What does break-even month mean here?
It is the first month where modeled buy-side equity exceeds the renter investment path under your assumptions.
Does this include taxes and maintenance?
Yes. The model includes property tax, home insurance, maintenance, HOA, closing costs, and selling costs.
How is opportunity cost handled?
The tool models the renter path with invested down-payment and monthly cashflow differences at a user-defined return rate.
Why can break-even be `not reached`?
Under some assumptions, renting plus invested capital can stay ahead across the full analysis horizon.
Can I share assumptions with someone else?
Yes. Use the share URL button to encode all assumptions in the query string.
Can agents execute this deterministically?
Yes. The route registers `rent_vs_buy_break_even` and ships a stable v1 contract.
Is this tool free and private to use?
Yes. AI Fin Hub tools are free, no-signup browser tools. Inputs stay in your browser unless you choose to share a URL.
Can I use this with AI agents too?
Yes. Human mode is the default experience. If you use AI automation, open the optional 'For AI Agents' section for deterministic contracts.
Is this professional advice?
No. Outputs are planning estimates only — not financial, tax, or investment advice.