NPV Breakeven Analysis
Discounted cash flow comparison to find the exact month buying becomes cheaper than renting.
NPV Breakeven Analysis
We compute a discounted cash flow comparison of cumulative renting vs. buying costs over 1-30 year horizons. The breakeven point is the exact month where cumulative buying costs (including opportunity cost of the down payment) become lower than cumulative renting costs.
Using the Monte Carlo output, we report breakeven at multiple confidence thresholds: 50% (more likely than not), 75% (likely), and 90% (highly likely). This tells you not just when buying might be cheaper, but how confident you can be in that conclusion.