Rent vs Buy Calculator — Which Is Cheaper For You?
"Renting is throwing money away" is a myth — and so is "buying always wins." The honest answer depends on your numbers and how long you'll stay. This calculator compares the total cost of renting vs buying over your chosen period, including mortgage interest, maintenance, taxes and rent rises, and tells you which comes out ahead.
Simplified model: ignores tax deductions, transaction/closing costs and investment of the down payment. Use as a guide, not gospel.
How to use this tool
- Enter how many years you realistically expect to stay — this is the biggest factor.
- Fill in your current rent and how fast rents rise in your area.
- Enter the home price, your down payment, mortgage rate and term.
- Set yearly upkeep+tax and expected home appreciation, then compare.
Frequently asked questions
Is it really cheaper to rent sometimes?
Yes — especially over short stays. Buying has large upfront and exit costs (down payment, closing fees, agent fees) that only pay off if you stay long enough for appreciation and equity to outweigh them. Under ~5 years, renting often wins; over 10+, buying usually does.
What's the break-even point for buying?
The year when accumulated buying costs drop below renting costs — commonly 4 to 7 years in many markets, but it swings with mortgage rates, price growth and how much rents rise. If you might move before then, renting is the safer financial bet.
Does this include the opportunity cost of the down payment?
This simplified model does not — a more advanced analysis would also invest the down payment (and any monthly savings) if you rent, and compare portfolios. Buying looks slightly better here than a full model would show, so treat a narrow 'buy wins' with caution.
Should I factor in tax benefits?
In some countries mortgage interest or property costs are tax-deductible (or rent is not), which tilts the maths. This tool ignores taxes for universality — adjust the numbers, or consult a local advisor if deductions are significant where you live.
Rates are high right now — should I wait?
Higher mortgage rates raise the cost of buying and push break-even further out, favouring renting in the short term. But nobody reliably times markets. Run the tool at today's rate and at a lower rate to see how sensitive your decision is.