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 ZAR 4 757,82 and starting rent is ZAR 2 200,00. These are editable scenario assumptions, not a market average or financial recommendation.
ZAR -205 025,77
Renting produces higher estimated net worth after investing the upfront cash and any monthly cost savings.
ZAR 263 130,04
Equity after sale costs plus investmentsZAR 468 155,81
Invested portfolioZAR 4 757,82
P&I, tax, insurance, PMI, HOA & upkeepZAR 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 | ZAR 463 500,00 | ZAR 399 279,63 | ZAR 36 410,37 | ZAR 88 697,72 | ZAR -52 287,35 |
| Yr 2 | ZAR 477 405,00 | ZAR 392 881,46 | ZAR 55 879,24 | ZAR 124 721,37 | ZAR -68 842,13 |
| Yr 3 | ZAR 491 727,15 | ZAR 385 725,22 | ZAR 76 498,30 | ZAR 162 128,30 | ZAR -85 630,00 |
| Yr 4 | ZAR 506 478,96 | ZAR 377 721,05 | ZAR 98 369,18 | ZAR 200 978,69 | ZAR -102 609,51 |
| Yr 5 | ZAR 521 673,33 | ZAR 368 768,48 | ZAR 121 604,45 | ZAR 241 335,64 | ZAR -119 731,19 |
| Yr 6 | ZAR 537 323,53 | ZAR 358 755,17 | ZAR 146 328,95 | ZAR 283 265,39 | ZAR -136 936,44 |
| Yr 7 | ZAR 553 443,24 | ZAR 347 555,43 | ZAR 172 681,22 | ZAR 326 837,46 | ZAR -154 156,24 |
| Yr 8 | ZAR 570 046,54 | ZAR 335 028,68 | ZAR 200 815,06 | ZAR 372 124,82 | ZAR -171 309,76 |
| Yr 9 | ZAR 587 147,93 | ZAR 321 017,68 | ZAR 230 901,38 | ZAR 419 204,11 | ZAR -188 302,74 |
| Yr 10 | ZAR 604 762,37 | ZAR 305 346,59 | ZAR 263 130,04 | ZAR 468 155,81 | ZAR -205 025,77 |
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.