Rent vs Buy Calculator
Compare the monthly cost of renting against the monthly cost of owning a home.
How to use the Rent vs Buy Calculator
- Enter what you would pay in monthly rent.
- Enter the home price, your down payment, and the mortgage rate and term.
- Add your local property tax and yearly maintenance as percentages of value.
- Compare the monthly cost of buying against renting.
Own = mortgage P&I + property tax/12 + maintenance/12, compared to rent
About the Rent vs Buy Calculator
Renting or buying is rarely a pure money decision, but the monthly numbers are where it starts. This calculator builds the true monthly cost of owning — the mortgage principal and interest on the amount you borrow, plus property tax and maintenance spread across the year — and lines it up against the rent you would otherwise pay. If owning costs less per month it says so; if it costs more, it shows exactly how much more.
Framing it as a monthly comparison keeps it honest and easy to act on. A mortgage payment alone often looks similar to rent, but tax and upkeep are the costs that quietly tip the balance, and seeing them broken out stops them being forgotten. Adjusting the down payment or rate shows how much each lever changes the monthly picture.
One important limit: this compares cash cost only. It does not count the home rising in value, the equity you build with every payment, or the return you could have earned by investing the down payment instead — all of which can favour buying or renting depending on your market and time horizon. Use it as the starting point, then weigh those longer-term factors. To size the loan, use the mortgage calculator; to check affordability, the home affordability calculator.
Frequently asked questions
Does this include home appreciation?
No. It compares monthly cash cost only. It leaves out the home gaining value, the equity you build, and the investment return on your down payment — all real factors that can change the answer over time.
Why is maintenance a percentage?
Upkeep roughly scales with the home's value, so a common rule of thumb is about 1% of the price per year. Adjust it up for older homes or down for newer ones; the tool spreads it across the months.
Which is better, renting or buying?
There is no single answer — it depends on how long you stay, your local prices, and what you would do with the money otherwise. This calculator settles the monthly-cost part of the question; the rest is about time and equity.