Renting $3,500/mo vs Buying $700,000: Break-Even in 27.4 Years
Renting at $3,500/month vs buying a $700,000 home: buying costs $352,336, renting $271,514 over the period, with break-even at year 27.4. Free rent vs buy calculator.
Frequently asked questions
When is it better to buy instead of rent?
Buying usually wins if you stay long enough to pass the break-even point — where accumulated ownership costs drop below what renting would have cost. The longer you stay, the more buying favors you, since upfront costs spread over more years.
What hidden costs does buying a home have beyond the payment?
Beyond the mortgage, owning includes property taxes, insurance, maintenance (often 1% of value yearly), and closing costs. Renting avoids these but builds no equity. This calculator weighs both sides over your expected time in the home.
Does the return lost by using savings for a down payment count?
Yes — the down payment could otherwise be invested, so its lost return is a real cost of buying. This calculator includes that opportunity cost, comparing owning against renting while investing the same money.