Rent vs Buy Calculator
Year-by-year net cost of owning versus renting, and the year buying pulls ahead.
About this tool
Enter the home price, deposit, mortgage rate and term, property tax, maintenance, insurance and service charges, buying and selling costs and expected price growth โ then the rent for a similar home, its yearly increase, the return on invested savings and how long you will stay. The verdict, the break-even year and a year-by-year table follow.
How the comparison works
A fair rent-versus-buy comparison has to spend the same money on both sides. Here both households start with the cash for the deposit and buying fees: the buyer spends it on the house, the renter invests it. Each year both spend the same total โ the larger of the owner's costs (mortgage payments, property tax, maintenance, insurance, service charge) and the rent โ and whoever's option is cheaper that year invests the difference. Net cost is then everything spent minus what each walks away with: home equity after selling costs plus any savings for the buyer, the investment pot for the renter. Buying typically wins after five to seven years, because the upfront fees take time to earn back; it can lose over short stays or where rents are low relative to prices. The answer is most sensitive to house-price growth and the investment return, so try pessimistic values. Mortgage-interest tax relief, which varies by country, is not included. The mortgage calculator shows the payment schedule, How mortgage amortization works, and why overpaying early matters explains it, the rent split calculator divides a rent, and the net worth calculator tracks the long-run result. General information, not financial advice.
Frequently asked questions
Is it cheaper to rent or buy?
It depends on how long you stay, the price-to-rent ratio, mortgage rates and price growth. Over short stays renting usually wins; over longer ones buying usually does, once the fees are earned back.
What is the break-even year?
The first year in which the net cost of buying drops below the net cost of renting, counting equity and invested savings on each side.
Why does the renter invest money?
Because the deposit and buying fees are cash the renter keeps. Investing it โ and any monthly saving โ makes the comparison fair.
Is anything stored?
No. The calculation runs in your browser; nothing is saved or sent.