Frequently Asked Questions
Find answers to common planning questions and learn how our calculators model the real math behind housing, auto, and debt decisions in these FAQs.
house Housing & Mortgages
What is the break-even horizon in Rent vs. Buy? expand_more
The break-even horizon is the year when cumulative home equity exceeds cumulative investment portfolio value from renting. Before this point, renting and investing is mathematically superior; after it, buying wins.
Try the Rent vs Buy Calculator arrow_forwardHow does property appreciation affect my wealth? expand_more
Property appreciation is compounded annually and directly affects your home equity trajectory. Higher appreciation favors buying; lower appreciation favors renting and investing. We use historical data as a baseline, but always encourage users to test multiple scenarios.
What is the "Break-Even Point" for mortgage refinancing? expand_more
In refinancing, the break-even point is the time it takes for the monthly savings from a lower interest rate to cover the total closing costs and penalties of the new loan. If you plan to move before this date, refinancing is likely a loss.
Analyze your Refinance arrow_forwardcommute Auto & Transportation
When does car-sharing become more expensive than ownership? expand_more
Car-sharing is generally cheaper for "habit-based" users who drive less than 150-200km per month and don't require a car for daily commutes. Once usage becomes frequent or requires long-distance daily travel, the fixed costs of ownership (even with depreciation) often become lower than the variable costs of sharing services.
Run the Car-Sharing Comparison arrow_forwardWhat is the "Total Cost of Ownership" (TCO)? expand_more
TCO includes every dollar spent on a vehicle: depreciation, fuel, insurance, maintenance, parking, taxes, and the opportunity cost of the capital tied up in the car. Most people only look at the monthly payment, but depreciation is often the largest hidden cost.
Calculate Your Car's TCO arrow_forwardverified Transparency & Methodology
How do you handle future inflation? expand_more
We allow users to set global inflation expectations. Our models use "real" dollars (inflation-adjusted) for long-term projections to ensure that a million dollars in 30 years is comparable to a million dollars today in terms of purchasing power.
Can I export the underlying math? expand_more
Yes. Every RealityMath calculator is transparent. You can view the yearly breakdown tables and, in many cases, export the raw data as a CSV for your own analysis in Excel or Google Sheets.
Read our Transparency Guarantee arrow_forwardStill have questions?
We're here to help you find the objective truth in your financial choices.
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