Rent vs Buy Calculator

The rent-versus-buy question is usually framed as a lifestyle choice, but it is also an arithmetic one, and the arithmetic surprises people in both directions. Renting is money out with nothing owned at the end; buying is money out with an asset retained, but with large upfront costs, ongoing ownership expenses and selling costs at the exit that can erase years of apparent gains. The honest comparison adds up everything each path costs over the years you actually expect to stay. For renting, that is the rent, rising each year with inflation. For buying, it is the down payment, the closing costs, every mortgage payment, property tax, maintenance and insurance, plus the selling costs when you leave — offset by the equity you recover, which is the home's value at sale minus the remaining loan balance. Two numbers drive the outcome more than the rest. One is the mortgage interest rate, because it sets the cost of borrowing. The other is how long you stay. Buying front-loads its costs: closing costs and interest-heavy early payments mean the first few years typically favour renting, while a long stay lets appreciation and principal repayment build equity that renting cannot match. That is why the classic break-even is often several years, and why buying for a short horizon frequently loses. Maintenance is the cost buyers most often underestimate. A useful rule is to budget around one per cent of the home's value each year for upkeep, more for older properties. Property tax is recurring and can rise; insurance is mandatory with a mortgage. Renters, meanwhile, carry none of these, though they bear rent increases and have no control over whether the landlord renews. This calculator compares total rent against the net cost of buying over the period you enter, and shows every component so you can see what drives the difference. It assumes a fixed mortgage rate, steady appreciation and constant ownership costs, and it ignores the tax treatment of mortgage interest and the return you could earn on the down payment if invested instead, so use it as a structured starting point rather than a final verdict.

This calculator returns estimates for general information only. It is not financial, investment, tax or legal advice, and it cannot replace guidance from a qualified professional who knows your circumstances. Figures such as loan payments, investment growth and retirement projections are simplified models based on the inputs and assumptions you provide, not guarantees of future results.