Rent vs Buy Calculator
Compare estimated costs of buying and renting over a period you choose. Results depend on your assumptions for rent, home costs, price changes and investment returns.
With the current inputs, estimated monthly ownership costs are CAD 2,908.66 and starting rent is CAD 2,200.00. These are editable scenario assumptions, not a market average or financial recommendation.
CAD 55,538.68
Buying generates higher estimated net worth after home equity and any invested monthly savings are combined.
CAD 302,528.21
Equity after sale costs plus investmentsCAD 246,989.53
Invested portfolioCAD 2,908.66
P&I, tax, insurance, PMI, HOA & upkeepCAD 2,200.00
Year 1 monthly rentCalculation is instantly saved in this shareable URL.
🗄️ Saved Comparison Scenarios (Side-by-Side)
Net Worth Trajectory Over Time
Year-by-Year Financial Progression
Tracking home appreciation, declining mortgage balance, buyer equity, and renter investment compounding.
| Year | Property Value | Mortgage Debt | Buyer Net Worth | Renter Net Worth | Net Advantage |
|---|---|---|---|---|---|
| Yr 1 | CAD 463,500.00 | CAD 352,555.63 | CAD 83,134.37 | CAD 113,662.79 | CAD -30,528.42 |
| Yr 2 | CAD 477,405.00 | CAD 344,731.97 | CAD 104,028.73 | CAD 128,415.80 | CAD -24,387.07 |
| Yr 3 | CAD 491,727.15 | CAD 336,509.69 | CAD 125,713.83 | CAD 143,240.17 | CAD -17,526.34 |
| Yr 4 | CAD 506,478.96 | CAD 327,868.46 | CAD 148,221.77 | CAD 158,115.15 | CAD -9,893.39 |
| Yr 5 | CAD 521,673.33 | CAD 318,786.92 | CAD 171,586.01 | CAD 173,017.95 | CAD -1,431.93 |
| Yr 6 | CAD 537,323.53 | CAD 309,242.66 | CAD 195,841.46 | CAD 187,923.59 | +CAD 7,917.88 |
| Yr 7 | CAD 553,443.24 | CAD 299,212.09 | CAD 221,024.56 | CAD 202,804.75 | +CAD 18,219.81 |
| Yr 8 | CAD 570,046.54 | CAD 288,670.46 | CAD 247,173.28 | CAD 217,631.62 | +CAD 29,541.67 |
| Yr 9 | CAD 587,147.93 | CAD 277,591.68 | CAD 274,327.38 | CAD 232,371.68 | +CAD 41,955.70 |
| Yr 10 | CAD 604,762.37 | CAD 265,948.42 | CAD 302,528.21 | CAD 246,989.53 | +CAD 55,538.68 |
How this rent-versus-buy calculator compares costs
The estimate compares home equity after projected appreciation, remaining mortgage balance and selling costs with the renter's invested upfront cash. Each month, the scenario with lower housing costs can invest the difference. Mortgage payments use a fixed-rate amortization formula; future home values, rent, costs and investment returns are assumptions you can change.
Country-specific costs and tax treatment
Local taxes, insurance, mortgage rules, and transaction costs vary. Enter the costs that apply to your home and verify current rules with a local authority or lender. Investment returns and home-price changes are not guaranteed.
Calculation Methodology & Proof
Rent vs buy
Both paths start with the same cash. The buyer puts it into the house; the renter invests it. Each year we compare net worth.
- Buyer cash outlay: down payment + buy closing, then PITI + maintenance each month.
- A simplified tax deduction reduces buyer cost by interest × marginal rate.
- Renter pays rent (growing) and renter insurance, and keeps the invested stake growing.
- Break-even is the first year buyer net worth exceeds renter net worth.
Important Caveats & Planning Assumptions
- Appreciation, returns, and rent growth are assumptions, not forecasts.
- Transaction costs and taxes on sale are stylized.
Frequently Asked Questions
Expert answers to common questions
Why can renting win on paper?
If the down payment would earn a high return, if you move before break-even, or if buy costs (tax, maintenance, selling costs) are high relative to rent.
Do you include the mortgage interest deduction?
A simplified deduction using your marginal tax rate is applied to interest. Caps, standard-deduction effects, and local tax treatment are not fully modelled.
What is 'advantage'?
Buyer net worth (home equity after selling costs) minus renter net worth (invested cash). Positive means buying is ahead in that year.