Finance & Property · Introduction
Buy vs Rent Calculator
Compare buying and renting with optional price growth and holding costs.
What can this tool help you do?
Compare buying and renting with optional price growth and holding costs.
Check the purpose and assumptions, then open the tool. Return to the guide for details.
Purpose and inputs
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.
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.
Before you begin
Tax, lending, holiday and protection rules vary by place and date. Check current local rules and provider terms. Results are estimates.