Estimated break-even
Year 7
Rent $1,900 per month vs a $400,000 home over 10 years
Your inputs
The result is a projection based on assumptions you control — not a recommendation.
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Estimated break-even
Year 7
From year 7 onward, ownership cost net of equity is projected to fall below cumulative rent.
- Cumulative rent over 10 years
- $261,376
- Ownership cost net of equity
- $224,041
- Estimated equity at the endAfter estimated selling costs and remaining balance.
- $217,074
Year-by-year detail
| Yr | Rent | Own (net) | Equity |
|---|---|---|---|
| 1 | $22,800 | $55,428 | $51,080 |
| 2 | $46,284 | $76,387 | $66,753 |
| 3 | $70,473 | $96,853 | $83,047 |
| 4 | $95,387 | $116,801 | $99,989 |
| 5 | $121,048 | $136,206 | $117,610 |
| 6 | $147,480 | $155,039 | $135,941 |
| 7 | $174,704 | $173,271 | $155,017 |
| 8 | $202,745 | $190,871 | $174,873 |
| 9 | $231,628 | $207,806 | $195,545 |
| 10 | $261,376 | $224,041 | $217,074 |
Assumptions behind these numbers
- · Ownership cost = down payment + purchase costs + principal and interest + taxes + insurance + HOA + maintenance, less the equity released if you sold at the end of the period after selling costs.
- · Renting cost = rent only, escalated once a year at the rate you set. It excludes renters insurance and any deposit.
- · Appreciation, rent growth and maintenance are estimates you choose. Small changes to them move the break-even year substantially.
- · The projection ignores income-tax treatment, investment returns on cash you did not spend on a down payment, and inflation.
- · Break-even is the first year where ownership cost net of equity falls at or below cumulative rent.
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