Interactive Tool

Rent vs Buy Calculator

Compare the true cost of renting versus buying over time, including equity building and opportunity costs.

Inputs

Monthly Rent

Annual Rent Increase

1%5%

Home Price

Down Payment

20% ($160,000)

5%50%

Interest Rate

5.50%

1%10%

Amortization

Annual Property Tax

Annual Insurance

Maintenance

1% ($667/mo)

0.5%3%

Home Appreciation

3%/yr

0%8%

Investment Return

6%/yr

2%10%

Years to Compare

10 years

130

Total Rent Cost$355,916

Total Buy Cost$788,330

Buying Wins By

$303,032

Home Equity

$594,135

Renter Investments

$291,103

Break-Even Year

Year 7

Wealth Projection Over Time

What This Means

Over 10 years, buying comes out ahead by $303,032. While total buying costs are $788,330, you build $594,135 in home equity. Buying breaks even with renting in year 7.

RAZZ Insight

The numbers favour buying, but remember that homeownership is also about stability and lifestyle. The break-even point matters most; if you plan to move before year 7, renting might still make more sense after factoring in selling costs.

Results are estimates only and may vary based on lender policies, market conditions, and individual circumstances. Consult a mortgage broker or financial advisor for accurate figures.

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