Calculator 06 of 09
Rent vs Buy Calculator
Over a holding period you choose, with every assumption on the page instead of buried in the maths.
Every figure produced here is illustrative and set for demonstration. Nothing on this page is a quote or an offer.
01Buying
Of the home's value, per year.
Renting
Year 8
Buying pulls ahead
On the assumptions you set
Net cost of renting over 10 years$297,358
Net cost of buying over 10 years$256,989
Equity after selling costs$334,405
Difference in favour of buying$40,369
Under about 8 years, transaction costs are not recovered and renting wins on these numbers.
02Net cost over time
Assumptions on this page
- Buying is charged with the mortgage payment, taxes, insurance, HOA and maintenance; renting is charged with rent only.
- The renter is assumed to invest the down payment and earn the return you set. That is what makes the comparison fair.
- Selling costs are deducted from the home value when equity is counted, so buying is not flattered at the exit.
- Appreciation and rent growth are inputs, not forecasts. Change them and the answer changes — that is the point of showing them.
- No tax deductions of any kind are modelled, and this is not tax advice.
Every rate, fee and figure here is illustrative and set for demonstration. Nothing on this page is a quote, an offer, a commitment to lend, or tax advice.