Crossover Year
The crossover year is when one path's cumulative wealth overtakes the other's in a side-by-side projection. Before that year one choice leads. After it the other does, such as when selling and reinvesting passes keeping a home as a rental.
A crossover year only exists when the two projected lines actually cross. In many scenarios one path leads for the entire horizon, and a comparison tool will report no crossover at all. That result is just as informative: it says the ranking of the two choices does not depend on how long you hold.
The concept matters because rent-vs-sell and similar decisions are horizon-sensitive. A path that looks worse over three years can win over fifteen, and the crossover year is the single number that captures where the ranking flips. It is a projection built on stated assumptions (appreciation, rents, reinvestment returns), not a guarantee, so small changes to those inputs can move it by years.
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Related terms: Opportunity Cost , Home Equity
Last updated . Part of the FinExplained finance glossary .