A plain-English explanation of what this calculator actually measures and why the numbers look the way they do.
Every dollar you spend on housing — whether it’s rent or a mortgage payment — is a dollar that couldn’t be invested somewhere else. This calculator charges both sides equally for that. The renter’s total looks smaller not because renting is free, but because less capital is deployed upfront. A down payment and closing costs locked into a home can’t compound in a portfolio. That foregone growth is part of the real cost of buying, and it’s included here.
The totals in the cost summary can look alarming — hundreds of thousands of dollars on each side. That’s not a bug. This is a total cost of capital framework measured over many years, not a monthly expense tally. It adds up everything: payments, taxes, insurance, maintenance, the growth you gave up, and what you got back when you sold or ended your lease. Comparing these totals is the only honest way to answer the question.
The methodology follows the approach used by the New York Times rent vs. buy calculator — the most widely cited framework for this type of analysis. The break-even year is the point at which the cumulative cost of buying falls below the cumulative cost of renting under your assumptions. Before that year, renting comes out ahead. After it, buying does.
This tool is not financial, tax, legal, or real estate advice. Use it to understand how the numbers interact under different assumptions, then consult qualified professionals before making a decision.