Rent vs. Buy Comparison
Is buying actually cheaper than renting?
Not always — and not right away. See the real break-even point, once you account for the equity you'd build by owning instead of renting.
Why this matters
The gut-feeling comparison — "my mortgage payment vs. my rent" — is misleading, because a mortgage payment isn't a pure expense the way rent is. Part of every payment builds equity you keep. So the real question isn't "which payment is smaller," it's "which option costs less once you account for what you get to keep."
There's also a break-even point. Buying comes with big upfront costs — the down payment, closing costs — that renting doesn't. It usually takes a few years of ownership before those upfront costs are outweighed by the equity you've built. Sell or move before that point, and renting may have actually been cheaper.
This tool finds that break-even year for your specific numbers, instead of relying on a rule of thumb that may not fit your situation.
Your Situation
Break-Even
Buying wins over this timeframeYour down payment isn't counted as a cost — it converts straight into home equity you still own. Closing costs (land transfer tax, legal fees) are a real cost, so buying starts the chart already behind. Rent, once paid, is gone for good.
This early break-even is being driven mainly by the 3.0% appreciation assumption, treated as instant equity each year. Try setting appreciation to 0% to see the break-even year without relying on market growth.
What these numbers mean
Estimates for planning purposes only — not financial advice. Doesn't include selling costs if you move, or the opportunity cost of your down payment.