Rent vs Buy Calculator and Housing Planner
Compare renting and buying with equal starting resources, monthly savings investments and a clear timeline. Explore costs, wealth and a possible crossover. These are planning estimates, not guaranteed returns, tax advice or mortgage approval.
Currency changes formatting only, not exchange rates or local rules. Enter your own costs and assumptions. No country-specific income, capital-gains or property-transfer tax rules are selected automatically.
Shared planning assumptions
The model uses equal monthly periods after this date, not daily interest or a lender’s payment calendar.
Investment returns and home appreciation are effective annual rates, converted to monthly rates. Rent changes once a year; fixed-cost growth applies to insurance, association fees and utilities. Property tax and percentage maintenance use the current home value. Mortgage interest uses a fixed nominal annual rate.
Selling deducts the entered selling costs; holding does not. Both show assets less debt, not guaranteed cash or after-tax returns. Separate sale figures remain visible in either mode.
Renting
The deposit is held without interest and assumed fully refundable. It is not a rent expense. Any rental loss or nonrefundable fee belongs in moving costs or a one-time expense.
Buying
A 100% down payment models a cash purchase. Closing and moving costs are paid upfront. Renovations entered below are expenses; they do not automatically raise the home value.
Mortgage insurance uses your entered monthly amount and last payment month, stopping when the loan ends. Zero months disables it. Eligibility and automatic cancellation rules are not inferred from a country or down payment.
One-time repairs and other expenses
Up to 12 entries can fall anywhere in the projection window. Only entries up to the evaluated horizon affect its totals. Expenses reduce that scenario’s monthly savings; the equal budget rises to cover them.
How long will you stay?
Move the slider to update the cards, costs and table. The charts show the full projection window; the vertical marker is the evaluated horizon.
Your estimated renting and buying outcomes
First buying crossover within the window
A crossover is conditional on these assumptions, not a promise. The first crossover can reverse later. The sustained date only means buying remains ahead through the selected projection window, not forever.
Both paths start with the larger of the two required cash amounts. Each month, both share a budget equal to the higher housing outlay. The lower-cost path invests the difference at month-end. Investment earnings stay invested. Extra starting cash common to both is not modeled.
Home equity before selling costs
The home sale alone would not cover the loan and entered selling costs. Other cash may be needed to complete a sale. This is not a foreclosure or lender settlement calculation.
Sale figures deduct the outstanding mortgage and entered selling fees, but not capital-gains taxes or taxes on investments. Home equity is not spendable cash unless you sell or obtain financing.
Where the housing money goes
Buying
Renting
Nonrecoverable expenses exclude the down payment, mortgage principal and refundable deposit. Housing cash outlays include cash spent acquiring equity. Investment contributions are not counted as housing expenses. Neither figure is the same as the modeled wealth difference.
Estimated wealth over time
The wealth chart uses the selected selling or holding basis. The cost chart excludes upfront cash and end-of-horizon sale fees; its detailed totals are above. Values may fall and buyer wealth can be negative.
Annual housing cash outlays
Home value and remaining mortgage
What changes the answer?
Each alternative changes one assumption only. These are illustrative stress tests, not probabilities or market forecasts. Cash purchases are unaffected by the mortgage-rate alternative.
Year-by-year and monthly comparison
| Year | Period end | Buyer housing outlay | Renter housing outlay | Mortgage principal repaid | Mortgage interest | Buyer wealth on the selected basis | Renter investments plus refundable deposit | Estimated home value | Remaining mortgage balance | Buying minus renting at this horizon |
|---|
The table stops at the evaluated horizon. Its final year may be partial. Initial cash and end-of-horizon selling fees are shown separately; period housing outlays do not include them.
Always-visible calculation steps
P = original mortgage; r = monthly mortgage rate; n = loan months; M = mortgage payment. I = investment account; s = effective monthly investment return; S = savings invested at month-end; H = home value; L = mortgage balance; F = selling fees. H₀ = Purchase price; D = Down payment; Dᵣ = Refundable rental deposit; B = Equal monthly housing budget; Cᵦ = Buyer housing outlay; Cᵣ = Renter housing outlay; Sᵦ = Buyer savings invested; Sᵣ = Renter savings invested; Wᵦ = Buyer wealth on the selected basis; Wᵣ = Renter investments plus refundable deposit.
A financial comparison, not a life decision
The model assumes you can fund both options and invest the monthly savings. Location, flexibility, employment, credit terms, repairs and personal priorities also matter. Your local taxes and benefit eligibility need separate checks. Future prices and investment returns are uncertain.
Home-buying cost references
Renting versus buying questions
Does a crossover guarantee buying is better?
No. It depends on your assumed costs, growth, return and time horizon. An early crossover can reverse. The sustained crossover only applies through the entered projection window.
Why include investments on both paths?
Both paths have equal starting capital and an equal monthly housing budget. Money not spent on housing is invested, so the comparison includes the opportunity cost of tying cash up in a home without charging it twice.
Can I model a cash purchase?
Yes. Enter a 100% down payment or a cash down payment equal to the purchase price. Mortgage payments and mortgage insurance then become zero; ownership expenses still apply.
Is the rental deposit an expense?
No. The entered deposit is assumed fully refundable and held without interest. It is a renter asset, unavailable for investment until returned. Nonrefundable fees must be entered separately.
Are taxes and mortgage insurance rules automatic?
No. Property-tax percentages and insurance costs are your inputs. Country-specific income tax, capital-gains tax, investment tax, mortgage-insurance eligibility and tax deductions are not calculated.
Why show both equity and sale proceeds?
Equity is home value minus mortgage debt. Sale proceeds also subtract entered selling fees. Total buyer wealth includes any investment account. These figures are not interchangeable or guaranteed after-tax cash.
Calculations run in your browser. This tool does not send the housing amounts you enter to our server.
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