Rent vs buy: what every calculator input means and how to set it
A plain-English guide to rent-vs-buy calculator inputs — price, rent growth, appreciation, time horizon, selling costs — and how to set them honestly.
Category · 3 guides
Calculator math
What each input means, how the formulas work and how to read the results honestly.
How to calculate your refinance break-even point (and when it misleads)
The refinance break-even formula, a worked example, and why comparing total interest over the years you'll keep the loan matters just as much.
Debt-to-income ratio: front-end vs back-end, with worked examples
What front-end and back-end DTI measure, how lenders use them, a worked example on $8,000 a month, and how to lower DTI before applying.
Other categories
Q.01How many years do I need to stay for buying to beat renting?
It depends on prices, rents and costs in your market, but short horizons usually favour renting because buying and selling costs have to be recovered. Run the calculator with your expected stay and a shorter and longer alternative.
Q.02What home appreciation rate should I use?
Use a conservative long-run figure for your area, and test a lower one. Assuming high appreciation is the fastest way to make buying look better than it is.
Q.03What is a good break-even point for a refinance?
One comfortably shorter than the time you expect to keep the loan. Many borrowers look for under 24–36 months, but the right answer depends on your plans.
Q.04Should closing costs rolled into the loan count in the break-even?
Yes. Financed costs still cost you — they increase the balance and the interest you pay.
Q.05What is a good debt-to-income ratio for a mortgage?
Lenders like to see a back-end DTI of 36% or less, and 43% is a common guideline ceiling. Some programs and automated underwriting approvals allow higher ratios with strong compensating factors such as reserves or credit.
Q.06Does DTI use gross or net income?
Gross monthly income — your income before taxes and deductions.
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