🏡 Rent vs Buy Calculator

1. Enter the monthly rent you are currently paying or expect to pay.
2. Enter the home purchase price you are considering.
3. Enter the down payment percentage and mortgage interest rate.
4. Enter the annual property tax rate and maintenance cost as percentages of home value.
5. Enter the number of years you plan to stay, then click Calculate.

Is it always better to buy if you plan to stay long-term?

Not necessarily. Even over long periods, buying can be more expensive than renting if home prices are very high relative to rents (a high price-to-rent ratio), if property taxes and maintenance costs are significant, or if mortgage rates are high. Use the calculator with local numbers to see which is truly cheaper in your market.

What costs does this calculator include for buying?

It includes the down payment, all mortgage payments (principal and interest), property taxes and maintenance over the time period. It does not include closing costs, homeowners insurance, HOA fees or the potential return on investing your down payment elsewhere. For a more complete picture, add those costs manually.

Does the calculator account for home price appreciation?

No. This simplified model compares out-of-pocket costs only. If home prices rise, the buyer may build equity that offsets some of the costs, which would make buying more favourable. Conversely, if prices fall, buying becomes more expensive. For a full analysis, consider potential appreciation separately.

How long do I need to stay for buying to make sense?

The break-even point (the number of years at which buying becomes cheaper than renting) varies enormously by location and market conditions. In some markets it is 3–5 years; in others it can be 10 or more. Run the calculator with your local numbers and your expected stay to find your personal break-even.

This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.

The rent-versus-buy decision is as much about lifestyle as it is about money. Renting gives you flexibility to move for career opportunities, avoids the risk and hassle of maintenance, and frees up your down payment for other investments that may earn a higher return. Buying builds equity over time, protects you from rent increases and offers the emotional satisfaction of ownership, but it also concentrates your net worth in a single illiquid asset. When using this calculator, be honest about how long you realistically plan to stay — transaction costs alone (closing costs to buy and agent commissions to sell) often total 6–10 percent of the home value, meaning you need several years just to break even on those costs. Property taxes and maintenance are ongoing costs that many first-time buyers underestimate: budget at least 1–2 percent of the home value per year for these. Finally, remember that a mortgage payment is fixed for decades while rent typically rises with inflation, so buying becomes relatively more attractive the longer you stay.