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What this calculator does
Compare the likely financial cost of renting with buying a home.
How to use this calculator
- Enter rent, home price, deposit, rate, timeframe, and cost assumptions.
- Review the calculation assumptions before using the result.
- The comparison highlights the scenario with the lower estimated cost.
How to calculate
Choose the calculation mode where available, then enter the values requested by the rent vs buy calculator. Results update immediately.
Worked example
With the example values shown above, the monthly mortgage payment is $1,918.56, and the total renting cost is $179,105.68, and the total buying cost is $186,159.18.
Understanding your result
The comparison highlights the scenario with the lower estimated cost.
- Local prices, maintenance, and selling costs can dominate.
- Double-check values and units before calculating.
This pre-tax estimate excludes country-specific income-tax deductions. Housing costs, investment returns, appreciation, and transaction fees can vary materially.
Frequently asked questions
What does this rent vs buy calculator do?
Compare the likely financial cost of renting with buying a home.
How do I use this rent vs buy calculator?
Enter rent, home price, deposit, rate, timeframe, and cost assumptions.
What does the result mean?
The comparison highlights the scenario with the lower estimated cost.
What should I check before relying on it?
Local prices, maintenance, and selling costs can dominate.
Why might renting look cheaper even though buying builds equity?
The comparison nets out ownership costs like mortgage interest, property tax, maintenance, and selling costs against the equity and appreciation gained — buying only wins financially once that built-up equity outweighs the extra ownership costs, which can take longer than expected.
What does the break-even point mean here?
It's the point where owning becomes the cheaper option compared with renting under the assumptions entered — staying longer than that generally tips the comparison toward buying in this model.