REALTOR® Tool
Rent vs. Buy
Should your client rent or buy? Projects year-by-year cumulative cost — including mortgage interest, taxes, insurance, HOA, maintenance, and exit costs against renting with annual escalators — then finds the breakeven year where buying nets ahead.
Breakeven year
Year 5
Buy net cost · year 10
$228,318
Rent total · year 10
$350,576
Buy
Rent
Horizon
Year-by-year — cumulative cost
Year 1rent ahead
Buy
$70,101
Rent
$31,440
Year 2rent ahead
Buy
$91,430
Rent
$61,632
Year 3rent ahead
Buy
$111,943
Rent
$93,022
Year 4rent ahead
Buy
$131,593
Rent
$125,658
Year 5buy ahead
Buy
$150,329
Rent
$159,590
Year 6buy ahead
Buy
$168,098
Rent
$194,870
Year 7buy ahead
Buy
$184,844
Rent
$231,551
Year 8buy ahead
Buy
$200,506
Rent
$269,690
Year 9buy ahead
Buy
$215,020
Rent
$309,345
Year 10buy ahead
Buy
$228,318
Rent
$350,576
| Year | Home Value | Loan Balance | Net Equity | Buy Net | Rent Total |
|---|---|---|---|---|---|
| 1 | $463,500 | $356,163 | $70,257 | $70,101 | $31,440 |
| 2 | $477,405 | $352,059 | $87,153 | $91,430 | $61,632 |
| 3 | $491,727 | $347,670 | $104,719 | $111,943 | $93,022 |
| 4 | $506,479 | $342,975 | $122,986 | $131,593 | $125,658 |
| 5breakeven | $521,673 | $337,953 | $141,987 | $150,329 | $159,590 |
| 6 | $537,324 | $332,581 | $161,757 | $168,098 | $194,870 |
| 7 | $553,443 | $326,835 | $182,333 | $184,844 | $231,551 |
| 8 | $570,047 | $320,689 | $203,754 | $200,506 | $269,690 |
| 9 | $587,148 | $314,115 | $226,061 | $215,020 | $309,345 |
| 10 | $604,762 | $307,084 | $249,298 | $228,318 | $350,576 |
Estimates only. Doesn't model tax deductibility (mortgage interest, SALT cap, standard deduction), opportunity cost of the down payment if invested elsewhere, or moves/refinances mid-horizon. Use as a starting point in the buyer consult, not as financial advice.