Short answer
A break-even is the input value at which both scenarios are equal. In rent versus buy it may be the required appreciation rate. It is not a forecast; it shows the assumption needed.
Important variables
- Same cost function for result and search
- Realistic search range
- Monotonic or multiple crossings
- Units and rounding
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Worked example
If the appreciation crossover is 1.4%, buying leads above and renting below that model value, provided every other assumption stays unchanged.
Break-even: What changes the result?
Changing rate, holding period or maintenance also moves the crossover. It always belongs to one exact scenario.
Common mistakes
- Calling the crossover a forecast
- Extrapolating beyond plausible ranges
- Changing several assumptions at once
Terms in this guide
Sources & assumptions
- European Central Bank — Bank interest rate statistics (2026-08-17)
- RATIOXA — Methodology and formulas (2026-08-17)
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Continue with your numbers
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