Finance & Property · How to use
Buy vs Rent Calculator
Follow the steps to enter your numbers and check the limits.
Get started in three steps
- 1
Step 1
Prepare your amounts, terms and applicable rates or prices.
- 2
Step 2
Open the tool, check the units and compare scenarios.
- 3
Step 3
Read the results and notes. Check official documents and sources before deciding.
Method and common questions
Purpose and inputs
Compare buying and renting with optional price growth and holding costs.
Method and assumptions
Ending price = initial price × (1 + annual price change/100)^years. Annual holding costs use that year’s opening home value × the entered cost percentage. Both inputs default to zero. Net buying cost = down payment + mortgage payments + holding costs − ending equity; equity = ending price − outstanding loan. Net renting cost = rent paid − investment gain on the down payment. Only the down payment is invested, not monthly differences. Rent changes annually. Transaction fees, taxes and unentered costs are not added automatically. Break-even is the first year-end when buying costs no more, not a promise it stays cheaper.
FAQ
- What are the limitations?
- Price growth and holding costs are assumptions, initially zero. Only the down payment is invested. Unentered costs are excluded; results are not forecasts.
Method
Ending price = initial price × (1 + annual price change/100)^years. Annual holding costs use that year’s opening home value × the entered cost percentage. Both inputs default to zero. Net buying cost = down payment + mortgage payments + holding costs − ending equity; equity = ending price − outstanding loan. Net renting cost = rent paid − investment gain on the down payment. Only the down payment is invested, not monthly differences. Rent changes annually. Transaction fees, taxes and unentered costs are not added automatically. Break-even is the first year-end when buying costs no more, not a promise it stays cheaper.
Last checked: 2026-10-19
Before you begin
Tax, lending, holiday and protection rules vary by place and date. Check current local rules and provider terms. Results are estimates.