Break-Even Calculator
Searching "when should I buy instead of lease"? Use your rent, rate, term, and down payment assumptions to estimate when ownership may overtake leasing.
Break-even inputs
Break-even results
Monthly rent: $9,500
Estimated monthly ownership payment: $10,632
Upfront down payment: $130,000
Estimated break-even: No break-even with current inputs
This is an estimate for educational purposes. Actual terms vary by lender and borrower profile.
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Educational Resource: BuyingABuilding.com is not a lender, mortgage broker, or financial advisor. We provide education and help connect business owners with participating SBA-approved lenders.
What is the break-even month when buying a building?
Break-even month is the point where cumulative ownership savings versus rent equal the upfront down payment. It gives you a payback timeline rather than just a total-cost comparison, which matters most if you might sell or relocate within a few years.
Break-even FAQ
What is break-even month when buying a building?
It is the estimated month where cumulative ownership advantage offsets the initial down payment compared with leasing.
Why does break-even sometimes not appear?
If monthly ownership cost is higher than rent using your assumptions, there may be no break-even point in the model.
Should I still buy if break-even is long?
Possibly. Some buyers prioritize control, long-term stability, and potential appreciation beyond a short payback window.