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 SGD 2,153.02 and starting rent is SGD 2,200.00. These are editable scenario assumptions, not a market average or financial recommendation.
SGD 170,320.53
Buying generates higher estimated net worth after home equity and any invested monthly savings are combined.
SGD 391,377.23
Equity after sale costs plus investmentsSGD 221,056.70
Invested portfolioSGD 2,153.02
P&I, tax, insurance, PMI, HOA & upkeepSGD 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 | SGD 463,500.00 | SGD 328,600.68 | SGD 107,853.88 | SGD 128,993.85 | SGD -21,139.98 |
| Yr 2 | SGD 477,405.00 | SGD 319,407.78 | SGD 131,743.34 | SGD 136,949.91 | SGD -5,206.57 |
| Yr 3 | SGD 491,727.15 | SGD 309,911.62 | SGD 157,267.03 | SGD 145,396.68 | +SGD 11,870.35 |
| Yr 4 | SGD 506,478.96 | SGD 300,102.19 | SGD 184,529.80 | SGD 154,364.43 | +SGD 30,165.36 |
| Yr 5 | SGD 521,673.33 | SGD 289,969.18 | SGD 213,643.00 | SGD 163,885.29 | +SGD 49,757.70 |
| Yr 6 | SGD 537,323.53 | SGD 279,501.89 | SGD 244,725.02 | SGD 173,993.38 | +SGD 70,731.64 |
| Yr 7 | SGD 553,443.24 | SGD 268,689.31 | SGD 277,901.60 | SGD 184,724.91 | +SGD 93,176.69 |
| Yr 8 | SGD 570,046.54 | SGD 257,520.04 | SGD 313,306.37 | SGD 196,118.34 | +SGD 117,188.03 |
| Yr 9 | SGD 587,147.93 | SGD 245,982.29 | SGD 351,081.32 | SGD 208,214.49 | +SGD 142,866.83 |
| Yr 10 | SGD 604,762.37 | SGD 234,063.93 | SGD 391,377.23 | SGD 221,056.70 | +SGD 170,320.53 |
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.