Property calculators
Rent vs Buy Calculator
Compare renting and buying over a chosen period using clear assumptions for rent, mortgage payments, ownership costs, property growth, selling costs and alternative returns. The result is an estimate, not a recommendation.
How this rent vs buy calculator works
The calculator estimates a renting scenario and a buying scenario over the comparison period entered. It uses rent growth, mortgage payments, ownership costs, transaction costs, sale value and an alternative return assumption.
The result compares estimated ending positions. It does not say that renting or buying is always better, and it does not replace local advice, lender estimates or detailed tax modelling.
Cash flow vs ending value
Monthly costs affect the comparison because the lower-cost monthly scenario can invest the difference when that option is enabled. The buying scenario also includes estimated equity after sale, while the renting scenario includes the estimated value of cash not used for buying.
Opportunity cost and alternative return
Opportunity cost is the assumed return on cash that could be used outside the buying scenario. The alternative return is only an assumption and is not a guarantee of investment performance.
Rent growth and property growth assumptions
Rent growth changes future rent in the renting scenario. Property growth changes the estimated sale price in the buying scenario. Small changes to either assumption can matter over long periods.
Buying costs, owner costs and selling costs
Buying costs are upfront transaction costs. Owner costs include recurring estimates such as property taxes or rates, insurance, maintenance and shared-property fees. Selling costs are deducted from the estimated sale price.
What this calculator does not include
This calculator provides general before-tax estimates only. It is not financial, tax, legal, accounting, mortgage or investment advice. It does not include local tax rules, rent control, transaction-specific legal costs, changing interest rates, lender approval, moving costs, personal risk tolerance or guaranteed investment returns.
Key terms and assumptions
- Scenario comparison: The calculator compares ending net positions for renting and buying under the assumptions entered. It does not recommend either choice.
- Mortgage estimate: The buying scenario uses a standard principal-and-interest mortgage payment based on purchase price, deposit/down payment, rate and term.
- Rent projection: Rent is stepped annually using the rent growth assumption. Other renter costs are kept flat in this v1 estimate.
- Ownership costs: Property taxes/rates, insurance, maintenance, shared-property fees and other owner costs are included as flat monthly estimates.
- Sale projection: The buying scenario estimates sale price, selling costs and remaining loan balance at the end of the comparison period.
- Opportunity cost: Upfront buying cash is invested in the renting scenario at the alternative return assumption. If enabled, the lower-cost monthly scenario also invests the monthly difference.
- Region settings: Region settings change defaults, labels and currency formatting only. They do not convert exchange rates or create country-specific results.
- General estimate: The result is a general before-tax estimate and does not include local tax, legal, lending, investment or housing rules.
FAQs
Does this calculator tell me whether to rent or buy?
No. It compares two scenarios from the assumptions entered and does not recommend one choice.
Does the estimate include tax?
No. The calculator is intended as a before-tax estimate and does not include deductions, capital gains tax or local tax rules.
What is opportunity cost?
Opportunity cost is the estimated return on money that could be used somewhere else instead of being tied up in buying costs or a deposit.
Why does property growth affect the result so much?
Growth assumptions compound over time and directly affect the estimated sale price and owner equity.
Why include selling costs?
Selling costs reduce the amount of equity available after sale, so ignoring them can overstate the buying scenario.
Does this include maintenance and service charges?
Yes, if entered. Maintenance and shared-property fees are part of recurring ownership costs.
Can rent growth or property growth be negative?
Yes. Negative assumptions can be entered to test downside scenarios.
What does break-even year mean?
It is the first projected year where the buying scenario is estimated to be at least equal to the renting scenario under the assumptions entered.
Can I use this outside the United States?
Yes. Region settings change labels, defaults and formatting only. They do not convert currencies.
Why can small assumption changes alter the answer?
Long-term rent, property and return assumptions compound, so small differences can become material over many years.