Question 1

How does the calculator decide whether to buy or rent?

Accepted Answer

It computes the total net cost of each option over your chosen time horizon. For buying, it accounts for mortgage payments, property tax, insurance, maintenance, and subtracts your sale proceeds. For renting, it tracks cumulative rent and the opportunity cost of investing your down payment instead.

Question 2

What is the break-even year?

Accepted Answer

The year at which buying becomes cheaper than renting on a cumulative basis. Before that year, renting is financially better. After it, buying pulls ahead — assuming your inputs stay accurate.

Question 3

What does "opportunity cost of the down payment" mean?

Accepted Answer

If you rent instead of buy, you keep your down payment and can invest it. The calculator models that investment growing at your chosen annual return rate, and counts those gains as a benefit of renting.

Question 4

Why does the result change so much when I move the "years to stay" slider?

Accepted Answer

Buying has high upfront costs (down payment, closing costs baked into the mortgage) that take years to offset through equity and appreciation. The longer you stay, the more buying tends to make sense.

Question 5

Are closing costs included?

Accepted Answer

Selling costs of ~6% (agent fees) are deducted from sale proceeds. Buyer closing costs of ~2–3% are not currently included, so the calculator is slightly optimistic for buying. Always factor those in for a real decision.