Purchase Break-Even

Compare upfront prices and monthly running costs.

Your numbers

Enter your numbers to see the result.

How Purchase Break-Even works

Compare two options with different upfront and recurring monthly costs. If Option B saves money each month, divide its additional upfront cost by that monthly saving and round up to find the month it becomes cheaper.

A worked example

These sample values illustrate the calculation. Use your own numbers in the calculator for your result.

Example inputs

Option A upfront cost: 500
Option A monthly cost: 50
Option B upfront cost: 1000
Option B monthly cost: 20

When Option B becomes cheaper: 17 months
Option A first-year cost: $1,100.00
Option B first-year cost: $1,240.00

Assumptions and limits

Rates, fees and contribution schedules are the assumptions you enter. This estimate does not include changes you have not entered.

Educational estimate only. This is not personalized financial, investment or tax advice.