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Property calculators

Rent vs Buy Calculator

Compare renting and buying over a chosen period using clear assumptions for rent, mortgage payments, ownership costs, property growth, selling costs and alternative returns. The result is an estimate, not a recommendation.

Rent vs buy inputs

Core comparison

Rent, purchase, mortgage, holding period and growth assumptions.

$
%
$
$
%
years
years
%
More inputsOptional renting, buying, sale and opportunity-cost assumptions.
Renting costsOptional monthly costs added to rent.
$
$
Buying and ownership costsPurchase costs and recurring owner costs.
%
$
$
$
$
$
$
Sale and opportunity costSelling costs and alternative return assumptions.
%
$
%
Region and currencyChanges defaults, labels and currency formatting. Reset applies regional defaults.

Region settings change defaults, labels, units and formatting only. They do not convert currencies or provide tax advice. US defaults use down payment, property taxes, HOA and renters insurance labels.

Key takeaway

The two scenarios are close over 10 years. Small changes to rent growth, property growth, costs or alternative return could change the result.

Scenario comparison

Ending values for the renting and buying scenarios.

Buying net position
$299,256
Renting net position
$303,017
Buying minus renting
-$3,761
Break-even year
Not available

Key metrics

Mortgage, equity, investment and break-even estimates.

Buying net position
$299,256
Renting net position
$303,017
Break-even year
Not available
Monthly mortgage payment
$2,528
Owner equity after sale
$299,256
Renting investment value
$303,017

Cost totals

Total rent, mortgage, owner costs and buying cash outflow.

Total rent paid
$302,646
Total renting costs
$305,646
Buying costs
$15,000
Total mortgage paid
$303,393
Total owner costs
$108,000
Total buying cash outflow
$526,393

Sale projection

Estimated sale value, selling costs and remaining loan balance.

Purchase price
$500,000
Annual property growth
3%
Estimated sale price
$671,958
Selling costs
$33,598
Remaining loan balance
$339,105
Owner equity after sale
$299,256

Key assumptions

Main rent, buying, growth and opportunity-cost assumptions used in this comparison.

Loan amount
$400,000
Loan-to-value
80.0%
Annual rent growth
3%
Alternative annual return
4%
Invest monthly difference
Yes

General estimate only. These assumptions explain the scenario shown; they are not a quote, approval or advice.

Yearly comparisonProjected net positions at each year end.

Year 1

Renting ahead by $40,581

Buying net
$93,721
Renting net
$134,302
Loan balance
$395,529

Year 2

Renting ahead by $40,401

Buying net
$113,169
Renting net
$153,570
Loan balance
$390,759

Year 3

Renting ahead by $39,401

Buying net
$133,376
Renting net
$172,778
Loan balance
$385,669

Year 4

Renting ahead by $37,520

Buying net
$154,378
Renting net
$191,898
Loan balance
$380,238

Year 5

Renting ahead by $34,691

Buying net
$176,211
Renting net
$210,903
Loan balance
$374,444

Year 6

Renting ahead by $30,846

Buying net
$198,913
Renting net
$229,760
Loan balance
$368,261

Year 7

Renting ahead by $25,911

Buying net
$222,525
Renting net
$248,436
Loan balance
$361,665

Year 8

Renting ahead by $19,807

Buying net
$247,089
Renting net
$266,896
Loan balance
$354,627

Year 9

Renting ahead by $12,453

Buying net
$272,650
Renting net
$285,103
Loan balance
$347,117

Year 10

Renting ahead by $3,761

Buying net
$299,256
Renting net
$303,017
Loan balance
$339,105

Warnings and limits

  • This is a before-tax estimate and does not include local tax, legal or lender rules.

Save or share this result

Copy a plain-English summary or download a CSV with the inputs, results, warnings and general-estimate note.

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General estimate only

This calculator provides general before-tax estimates only. It is not financial, tax, legal, accounting, mortgage or investment advice. It does not predict property prices, rent changes, investment returns, lender approval or local housing rules.

How this rent vs buy calculator works

The calculator estimates a renting scenario and a buying scenario over the comparison period entered. It uses rent growth, mortgage payments, ownership costs, transaction costs, sale value and an alternative return assumption.

The result compares estimated ending positions. It does not say that renting or buying is always better, and it does not replace local advice, lender estimates or detailed tax modelling.

Cash flow vs ending value

Monthly costs affect the comparison because the lower-cost monthly scenario can invest the difference when that option is enabled. The buying scenario also includes estimated equity after sale, while the renting scenario includes the estimated value of cash not used for buying.

Opportunity cost and alternative return

Opportunity cost is the assumed return on cash that could be used outside the buying scenario. The alternative return is only an assumption and is not a guarantee of investment performance.

Rent growth and property growth assumptions

Rent growth changes future rent in the renting scenario. Property growth changes the estimated sale price in the buying scenario. Small changes to either assumption can matter over long periods.

Buying costs, owner costs and selling costs

Buying costs are upfront transaction costs. Owner costs include recurring estimates such as property taxes or rates, insurance, maintenance and shared-property fees. Selling costs are deducted from the estimated sale price.

What this calculator does not include

This calculator provides general before-tax estimates only. It is not financial, tax, legal, accounting, mortgage or investment advice. It does not include local tax rules, rent control, transaction-specific legal costs, changing interest rates, lender approval, moving costs, personal risk tolerance or guaranteed investment returns.

Key terms and assumptionsFormula notes, key terms, source assumptions and limits used in this calculator.

These notes are specific to this calculator. Read the property methodology notes for shared property formulas, region settings and estimate limits.

Scenario comparison
The calculator compares ending net positions for renting and buying under the assumptions entered. It does not recommend either choice.
Mortgage estimate
The buying scenario uses a standard principal-and-interest mortgage payment based on purchase price, deposit/down payment, rate and term.
Rent projection
Rent is stepped annually using the rent growth assumption. Other renter costs are kept flat in this focused estimate.
Ownership costs
Property taxes/rates, insurance, maintenance, shared-property fees and other owner costs are included as flat monthly estimates.
Sale projection
The buying scenario estimates sale price, selling costs and remaining loan balance at the end of the comparison period.
Opportunity cost
Upfront buying cash is invested in the renting scenario at the alternative return assumption. If enabled, the lower-cost monthly scenario also invests the monthly difference.
Region settings
Region settings change defaults, labels and currency formatting only. They do not convert exchange rates or create country-specific results.
General estimate
The result is a general before-tax estimate and does not include local tax, legal, lending, investment or housing rules.

Guides and methodology

Plain-English notes that explain the assumptions behind related calculators and tools.

Rent vs Buy Assumptions GuideUnderstand holding period, transaction costs, maintenance, rent growth, property growth and opportunity cost in rent-vs-buy comparisons.Mortgage Payment ExampleA practical mortgage payment scenario showing price, deposit, loan amount, interest rate, term and housing costs.Mortgage Repayments ExplainedUnderstand principal, interest, home-loan repayments, total housing cost and regional mortgage wording.Which Property Calculator Should I Use?Choose between mortgage, rental, rent-vs-buy, refinance, BRRRR, flipping and yield calculators by question.Property calculator methodologyShared property formulas and assumptions for mortgages, rental metrics, downside scenarios, region settings and estimate limits.

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FAQs

Does this calculator tell me whether to rent or buy?

No. It compares two scenarios from the assumptions entered and does not recommend one choice.

Does the estimate include tax?

No. The calculator is intended as a before-tax estimate and does not include deductions, capital gains tax or local tax rules.

What is opportunity cost?

Opportunity cost is the estimated return on money that could be used somewhere else instead of being tied up in buying costs or a deposit.

Why does property growth affect the result so much?

Growth assumptions compound over time and directly affect the estimated sale price and owner equity.

Why include selling costs?

Selling costs reduce the amount of equity available after sale, so ignoring them can overstate the buying scenario.

Does this include maintenance and service charges?

Yes, if entered. Maintenance and shared-property fees are part of recurring ownership costs.

Can rent growth or property growth be negative?

Yes. Negative assumptions can be entered to test downside scenarios.

What does break-even year mean?

It is the first projected year where the buying scenario is estimated to be at least equal to the renting scenario under the assumptions entered.

Can I use this outside the United States?

Yes. Region settings change defaults, labels and currency formatting only. They do not perform exchange-rate conversion.

Why can small assumption changes alter the answer?

Long-term rent, property and return assumptions compound, so small differences can become material over many years.