Rent climbs almost every year; a fixed mortgage payment does not. This calculator finds the point where your cumulative rent overtakes cumulative mortgage payments — the crossover that often tips the rent-versus-buy decision.
Estimate only — not financial advice. Confirm rates, taxes, and figures with your lender, accountant, and Brian before acting.
How the rent-versus-buy crossover works
The calculator grows your rent each year by the increase you enter and adds it up over the horizon you choose. It compares that running total to the cumulative principal-and-interest on a fixed mortgage for your target price. Because rent rises and a fixed mortgage payment does not, rent often crosses above the mortgage at some point — the tool reports the year it happens.
- Cumulative rent: each month's rent, compounded by your annual increase, summed over the period.
- Cumulative mortgage P&I: the fixed monthly principal-and-interest payment times the number of months, on a loan of 80% of the price (20% down).
- Crossover year: the first year your total rent paid exceeds total mortgage P&I paid.
An apples-to-apples comparison has limits
This tool deliberately compares rent against principal and interest only, so the two sides are measured on similar footing. In real life, owning adds property taxes, insurance, maintenance, and possibly HOA dues — costs renting avoids. But owning also builds equity with every payment and offers a fixed payment that rent never matches.
What buying adds that this view omits
- Equity: part of every mortgage payment pays down your loan, unlike rent.
- Potential appreciation on an ~$850,000 Simi Valley home.
- A payment that stays put while rent keeps climbing.
What renting keeps
- Flexibility to move without selling.
- No responsibility for repairs, taxes, or insurance directly.
- Lower upfront cash than a down payment and closing costs.
Reading your result honestly
If rent crosses above your mortgage P&I within a few years, buying tends to look stronger the longer you stay — and that is before counting equity. If the crossover is far out or never happens at your inputs, renting may suit your timeline. For a fuller picture that includes taxes, equity, and a true break-even, see the detailed rent-vs-buy analysis linked below or ask Brian to run your exact numbers.
Frequently Asked Questions
Will rising rent eventually cost more than buying?
Often yes, because rent typically rises every year while a fixed mortgage payment stays the same. This calculator shows the year your cumulative rent overtakes cumulative mortgage principal and interest. The faster your rent climbs, the sooner that happens.
Does this calculator account for property taxes and maintenance?
No. It intentionally compares rent against mortgage principal and interest only, for a like-for-like view. Owning adds taxes, insurance, and upkeep — but it also builds equity, which renting does not. Use the full rent-vs-buy break-even analysis for the complete picture.
What rent increase should I assume?
Look at your recent renewals and the local trend. Many California renters have seen annual increases in the mid-single digits. Try a few rates to see how sensitive the crossover year is.
Does buying build equity that renting does not?
Yes. A portion of every mortgage payment reduces your loan balance, and the home may appreciate. Rent payments build no ownership. That equity is a major reason buying often wins over a longer horizon even when monthly costs look similar.
