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 HKD 2,447.84 and starting rent is HKD 2,200.00. These are editable scenario assumptions, not a market average or financial recommendation.
HKD 49,784.44
Buying generates higher estimated net worth after home equity and any invested monthly savings are combined.
HKD 322,385.25
Equity after sale costs plus investmentsHKD 272,600.80
Invested portfolioHKD 2,447.84
P&I, tax, insurance, PMI, HOA & upkeepHKD 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 | HKD 463,500.00 | HKD 311,308.84 | HKD 124,381.16 | HKD 155,753.82 | HKD -31,372.66 |
| Yr 2 | HKD 477,405.00 | HKD 307,380.24 | HKD 141,380.46 | HKD 167,418.44 | HKD -26,037.98 |
| Yr 3 | HKD 491,727.15 | HKD 303,198.96 | HKD 159,024.56 | HKD 178,963.93 | HKD -19,939.37 |
| Yr 4 | HKD 506,478.96 | HKD 298,748.73 | HKD 177,341.50 | HKD 190,357.80 | HKD -13,016.31 |
| Yr 5 | HKD 521,673.33 | HKD 294,012.26 | HKD 196,894.55 | HKD 202,098.66 | HKD -5,204.11 |
| Yr 6 | HKD 537,323.53 | HKD 288,971.12 | HKD 218,130.01 | HKD 214,563.66 | +HKD 3,566.35 |
| Yr 7 | HKD 553,443.24 | HKD 283,605.73 | HKD 241,166.35 | HKD 227,797.48 | +HKD 13,368.88 |
| Yr 8 | HKD 570,046.54 | HKD 277,895.21 | HKD 266,129.87 | HKD 241,847.52 | +HKD 24,282.34 |
| Yr 9 | HKD 587,147.93 | HKD 271,817.41 | HKD 293,155.04 | HKD 256,764.15 | +HKD 36,390.89 |
| Yr 10 | HKD 604,762.37 | HKD 265,348.68 | HKD 322,385.25 | HKD 272,600.80 | +HKD 49,784.44 |
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.