Is it better to rent or buy a home?

It depends on how long you plan to stay. Renting often wins if you move within 3–5 years due to high upfront buying costs (deposit, stamp duty, closing costs). Beyond 5–10 years, buying typically builds more wealth through equity growth and home appreciation.

What is the break-even point when buying a house?

The break-even point is the year when your cumulative cost of buying equals the cumulative cost of renting. Before this year, renting would have been cheaper; after it, buying produces higher net wealth.

How much deposit do I need to buy a house?

Most lenders require 5–20% of the purchase price as a deposit. A larger deposit reduces your loan-to-value (LTV) ratio, which unlocks lower interest rates and avoids mortgage insurance (PMI in the US, LMI in Australia).

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Rent vs Buy Calculator — Find Your Break-Even Year

Should you rent or buy? See the exact year buying pulls ahead — and how much wealth you build either way. Includes opportunity cost, property tax, maintenance, and real investment returns.

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How this calculator works

Most rent-vs-buy tools only compare your monthly mortgage to your monthly rent. That misses two big factors:

Opportunity cost — the down payment could be invested and compounding instead
True ownership costs — property tax, maintenance (~1–2% of home value/year), insurance, and HOA

This calculator tracks your net worth under both scenarios and finds the year where buying pulls ahead.

Sources

ONS — UK House Price Index— UK data
Federal Reserve — Financial accounts of the US— US data

Rent vs Buy Calculator — Find Your Break-Even Year

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How this calculator works