Question 1

What does the breakeven year mean?

Accepted Answer

It’s the first year buying pulls ahead of renting — and stays ahead. Before that year, renting leaves you richer, mostly because of closing costs and the down payment’s lost investment growth. The chart shows both lines crossing; the gold dot marks the crossover.

Question 2

What is opportunity cost — and why does this calculator count it?

Accepted Answer

Your down payment, plus the monthly savings from renting, could be earning market returns instead — typically modeled at 7% a year. Ignoring that is how most calculators quietly flatter buying. Use the renter toggle to compare both behaviors: a renter who invests the difference versus one who spends it.

Question 3

Why does it say my tax benefit is $0?

Accepted Answer

You only get a mortgage tax benefit when your itemized deductions beat the standard deduction ($16,100 single / $32,200 joint for 2026). Many buyers — especially with smaller loans — don’t clear that bar, so the “benefit” is genuinely zero. For 2026 the SALT cap is $40,400, and only interest on the first $750,000 of loan counts.

Question 4

Why does my state change the answer so much?

Accepted Answer

Property tax alone runs from about 0.3% to 2.5% of the home’s value per year — on a $500,000 home that’s $1,500 versus $12,500 every year. Transfer and recording taxes, state income tax (which changes what deductions are worth), rent-growth caps, and insurance costs stack on top. This calculator applies your state’s real numbers automatically.

Question 5

What are rent caps, and how do they affect the math?

Accepted Answer

Some states and cities limit how fast landlords can raise rent — California, for example, caps covered homes at about 10% a year. Slower rent growth favors renting, so where a cap applies this calculator flags it and you can lower the rent-growth assumption to match.

Question 6

What does “today’s dollars” mean?

Accepted Answer

Future amounts are discounted by 2.5% inflation a year, so $50,000 in year 20 reads as its purchasing power today. A dollar in 20 years buys less — comparing in today’s dollars keeps the verdict honest. Switch to Nominal if you want raw future dollars.

Question 7

What if I move earlier than the breakeven year?

Accepted Answer

Then renting usually wins — closing costs (about 2% buying, about 6% selling) need time to amortize. Try the downside check: it replays your scenario with a 10% price drop, so you can see how the answer holds up when the market disappoints.

Question 8

Where does my data go?

Accepted Answer

Nowhere. Every number on this page is computed in your browser — no server, no database, no tracking. Share links carry only your inputs in the URL.

Rent vs Buy

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