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Home, Property & Mortgages

Rent vs Buy Calculator

Compare the net cost of renting versus buying a home over your planned stay, including equity, appreciation and opportunity cost.

Your inputs

Results

Cheaper option over this period

Renting

Difference in net cost
$21,289.19
Net cost of buying
$166,728.96
Net cost of renting
$145,439.78
Your equity after selling
$173,100.59
Total rent paid
$183,899.09

≈Estimate based on the stated model and assumptions

Notes for this result

  • Net cost of buying = upfront cash + mortgage payments + tax, maintenance and insurance − equity after selling.
  • Net cost of renting = rent paid − growth the upfront cash would have earned if invested. Monthly cost differences are not invested in this model, and taxes on gains or mortgage interest deductions are ignored.

Inputs are never added to links for financial, salary or health calculators.

What this calculator does

Buying builds equity but carries upfront and running costs; renting keeps cash free to invest. This tool totals both paths over the years you plan to stay.

Formula and method

Buying = upfront cash + mortgage payments + tax + maintenance + insurance − (sale price × (1 − selling costs) − remaining loan) Renting = total rent − growth on the upfront cash invested at your chosen return

Worked example

Calculated by this tool with its default inputs:

Inputs

  • How long you plan to stay: 7 years
  • Current monthly rent: 2000 (any currency)
  • Annual rent increase: 3 %
  • Home price: 400000 (any currency)
  • Down payment: 20 %
  • Buying costs (% of price): 3 %
  • Mortgage rate: 6.5 %
  • Mortgage term: 30 years
  • Property tax (% of value per year): 1.2 %
  • Maintenance (% of value per year): 1 %
  • Home insurance per year: 1500 (any currency)
  • Home price growth per year: 3 %
  • Selling costs (% of sale price): 6 %
  • Return if the upfront cash were invested instead: 5 %

Results

  • Cheaper option over this period: Renting
  • Difference in net cost: 21,289.19
  • Net cost of buying: 166,728.96
  • Net cost of renting: 145,439.78
  • Your equity after selling: 173,100.59
  • Total rent paid: 183,899.09

How to read the results

Short stays usually favour renting because buying and selling costs dominate; longer stays shift the balance toward buying.

Assumptions and limitations

  • Simplified model: monthly cost differences are not invested, and taxes, mortgage-interest deductions and rent deposits are ignored.
  • Home prices and returns are uncertain — test several assumptions.

Financial results are estimates based on the inputs and assumptions shown. They are not financial advice; confirm figures with your lender, provider or a qualified adviser before making decisions.

Questions

What drives the result most?

Usually how long you stay, home price growth, and the rent-to-price ratio.

Methodology and verification

Result type
Estimate based on the stated model and assumptions
Formula version
1.0
Automated verification
3 reference and validation test cases, checked against independently computed values. The site cannot be built if any of them fail.
Editorial review
Awaiting human editorial review. The explanation was drafted with AI assistance; the formula and examples are verified by the automated tests above.

Privacy

Everything you enter is calculated in this browser and is not sent to Numerith or anyone else. Because this calculator can involve personal financial or health details, your inputs are never added to share links or saved to history. Privacy policy