How it works
- Enter the home price, down payment, mortgage rate and term.
- Add property tax, upkeep and insurance, appreciation, and buying and selling costs.
- Enter your rent, how fast it rises, and what you would earn investing instead.
- Read the break-even year and compare net worth at years 5, 10, 20 and 30.
A fair comparison
Buying and renting are compared on equal footing: the renter invests the down payment and closing costs, then invests (or withdraws) the monthly difference between owning costs and rent. Buyer net worth is home value minus the loan and selling costs.
Why the answer changes so much
Small changes in rent, mortgage rate and appreciation can move the break-even year by a decade. That is why a single rule of thumb is unreliable, and why it is worth running your own numbers.