OnSumoTools

Rent vs Buy Crossover Calculator (2026)

See the exact year buying becomes cheaper than renting, based on your rent, your home price, your rate, and your assumptions.

100% client-side. Your inputs stay in this browser.

Enter your local rent, target home, and assumptions. The chart and table update instantly to show the year owning becomes cheaper than renting.

Changing region updates defaults and currency for your location.

Renting
Buying
Ownership costs
Sale & horizon

Crossover year

Year 18

Buying becomes cheaper than renting

Monthly P&I

$2,129

$320,000 loan over 30 yr

Down payment

$80,000

20% of home price

Time horizon

30 yr

Projection length

Cumulative net cost: rent vs buy

Side-by-side by year

YearRent (net)Buy (net)Buy − Rent
Year 5$95,215$139,320$44,105
Year 10$197,761$241,441$43,680
Year 15$305,651$326,232$20,580
Year 20$415,314$388,062−$27,252
Year 30$612,830$408,991−$203,839

How does the Rent vs Buy Crossover Calculator work step by step?

The calculator projects costs for both options year by year across your chosen time horizon. For renting, it accumulates monthly rent payments with an annual increase rate you set, and tracks what your down payment would have earned if invested instead. For buying, it adds up mortgage principal and interest payments, property taxes, insurance, HOA fees, maintenance, and the down payment, then subtracts the home equity you build (home value minus remaining mortgage balance minus selling costs) to get the net cost of owning. The crossover year is the first year where the cumulative net cost of buying falls below the cumulative cost of renting. If buying never catches up within your chosen time frame, the tool says so directly.

What does a typical Rent vs Buy Crossover Calculator result look like?

Monthly rent: $2,000. Annual rent increase: 3%. Home price: $400,000. Down payment: 20% ($80,000). Mortgage rate: 7% (30-year fixed). Property tax: 1.2%. HOA + insurance + maintenance: $8,000 per year. Investment return on down payment alternative: 7%. Selling costs: 6%. The two lines cross around year 7 or 8 with these inputs. By year 15, cumulative rent is approximately $340,000 versus cumulative buy cost approximately $260,000. The gap widens because rent keeps rising while the fixed mortgage payment stays flat and home equity grows.

Frequently asked questions

  • What is a crossover year?

    The crossover year is the first year when the total cost of buying drops below the total cost of renting. Before that year, renting costs less. After it, owning costs less for every additional year you stay. If you plan to move before the crossover year, renting is likely the better financial choice at those assumptions.

  • How does the calculator handle the opportunity cost of my down payment?

    It assumes you invest the down payment amount at the return rate you enter (default 7%, a common long-term stock market average). The cumulative investment gain is subtracted from your rent cost, since that money could have been growing if you had not used it as a down payment. Verify current figures with the IRS or relevant authority before making financial decisions, as rates change annually.

  • Does this account for the mortgage interest tax deduction?

    Not directly. The tax benefit of mortgage interest depends on your tax bracket and whether you itemize deductions. For most households taking the standard deduction, the mortgage interest deduction provides little or no additional benefit. If you itemize, the crossover year may be slightly earlier than shown.

  • What if I move before the crossover year?

    Moving before the crossover year means buying cost you more than renting would have, after accounting for selling costs (default 6%, covering agent commissions and closing fees). The table in the output shows the net cost difference at year 5, 10, 15, 20, and 30 so you can gauge the risk.

  • Why are my numbers different from another rent-vs-buy calculator?

    Different calculators include or exclude different costs. Common differences: some do not account for investment opportunity cost of the down payment, some exclude maintenance, and some use different assumptions for home appreciation or rent increases. This tool shows all assumptions on screen so you can match them to any other calculator for comparison.

  • What appreciation rate should I use?

    The national long-term average for US home prices is roughly 3-4% per year (FHFA House Price Index). Local markets vary widely. Use your metro area's recent 10-year average if available, or stick with the 3% default for a conservative estimate. Verify current figures with the IRS or relevant authority before making financial decisions, as rates change annually.

Related tools

The question behind the question

People ask whether to rent or buy as if one always wins. It doesn't work that way. Buying costs a lot up front and pays off slowly. Renting costs less now and nothing builds up. The real question is how long you'll stay.

This tool finds the crossover year, the point where owning has cost you less than renting. Stay past it and buying wins. Leave before it and renting was the better call.

What the graph counts

On the buying side: the down payment, mortgage interest, property tax, insurance, upkeep, and the fees to sell. Against that, you gain equity from payments and from price growth. On the renting side: rent, with yearly increases, and renter's insurance.

The down payment has an opportunity cost. If you rent, that cash could sit in an index fund. The tool lets you set an investment return so the comparison is fair.

  • Home price growth is the biggest unknown. Pick a modest rate
  • Maintenance often runs 1 percent of the home's value per year
  • Selling costs can reach 6 to 8 percent of the price

Why results differ across tools

Every calculator rests on assumptions. Change the appreciation rate by one point and the crossover can move by years. That's normal, so test a low, middle and high case.

Tax breaks like the mortgage interest deduction help only some owners, and the standard deduction means many don't benefit. Check your own situation.

Your numbers stay on your device.