Monthly Mortgage vs Rent: A side-by-side of your total monthly homeownership cost (principal, interest, tax, maintenance) against your current rent. This shows the immediate cash-flow difference.
Total Cost to Own vs Rent: The net cost of buying (all payments plus down payment, minus the home's appreciated value) compared to total rent paid over the same period. A negative number means buying costs less overall.
Home Value After Period: The projected value of the home after appreciation. This is not guaranteed — real estate values can decline, especially over short horizons.
Break-Even Year: The year at which homeownership becomes cheaper than renting on a cumulative basis. If it shows "Beyond X years," buying doesn't break even within your chosen time frame.
How This Calculator Works
You enter a home price, down payment, interest rate, and monthly rent plus annual escalation rates for rent, property tax, maintenance, and appreciation. The tool computes a 30-year fixed mortgage payment, adds monthly tax and maintenance, then runs a year-by-year comparison against compounding rent. It reports the net cost difference and the year when owning breaks even against renting.
Quick Questions
Why does this assume a 30-year mortgage?
The 30-year fixed-rate mortgage is the most common loan product in the U.S. It keeps monthly payments lower, which makes the rent comparison more straightforward. A 15-year loan would show higher monthly costs but less total interest.
Does this include closing costs?
No. Closing costs typically add 2–5% of the home price to your upfront expense. Adding them to your down payment amount gives a more realistic ownership cost picture.
What appreciation rate should I use?
The U.S. historical average is roughly 3–4% per year, but this varies widely by market. High-growth cities may see 5–8%, while some areas see flat or negative appreciation. Use a conservative estimate for planning.
Should I factor in tax benefits of homeownership?
Mortgage interest is deductible if you itemize, but the 2017 standard deduction increase means fewer homeowners benefit from itemizing. The calculator does not model tax deductions — consult a tax advisor for your situation.
What about the opportunity cost of my down payment?
The "Investment Return" field lets you model what the down payment could earn if invested in the market instead. A higher assumed return makes renting more competitive because your capital grows faster in stocks than in home equity.