Buy vs Rent Break-Even Calculator
Buy vs Rent Break-Even Calculator
Wondering whether buying a home actually makes more financial sense than renting?
This Excel calculator helps you compare buying vs. renting over time by modeling the impact on your net worth, not just your monthly payment.
Instead of relying on the common “2–5 year break-even” rule, this calculator lets you plug in your own numbers and see when buying truly comes out ahead based on your situation.
What it does
This calculator compares two scenarios:
Renting
- Pay rent and recurring rental costs
- Pay essential living expenses
- Invest the remaining cash
Buying
- Pay mortgage, property tax, homeowners insurance, HOA, PMI, maintenance, and other ownership costs
- Pay essential living expenses
- Invest the remaining cash
- Build home equity over time
It then shows you when buying breaks even vs. renting, and how large the difference becomes over time.
What you can customize
You can edit key assumptions such as:
- rent
- home price
- down payment
- mortgage rate and loan term
- HOA
- property tax
- homeowners insurance
- maintenance
- closing costs
- selling costs
- take-home pay
- essential expenses
- inflation
- investment return
- home appreciation
- analysis period
What’s included
- Inputs sheet for entering your assumptions
- Dashboard with charts and break-even timeline
- Monthly calculation sheet for detailed modeling
- Yearly summary for a simpler annual view
- Notes sheet with formula and logic explanations
Who this is for
This is for you if you want to:
- compare renting vs. buying using your own numbers
- see whether buying really pays off in your market
- understand how long you need to stay before coming out ahead
Important note
This calculator is designed as a planning tool. Results depend on the assumptions you enter, and real-life factors like repairs, renovations, taxes, and sale timing can affect the outcome.