Mortgage vs Renting — Compare Costs & Equity Over Time

Friendly comparison of buying vs renting. Private by design—everything runs locally in your browser.

Inputs

Buying (Mortgage)

Renting

If enabled, renter invests the initial down payment & closing costs and any monthly savings vs owning.

Results

Break-even point: —
Cheaper at horizon: —
Owner net cost at horizon: —
Renter net cost at horizon: —

Net cost = total cash outflows minus assets. For owners, we subtract estimated home equity. For renters (if enabled), we subtract invested savings. This is a simplified model and is not financial advice.

How this comparison works

This mortgage vs rent calculator helps you compare the long-term cost of buying a home versus renting. It is designed to turn a complicated decision into a clear, month-by-month comparison so you can see where your money goes and when one option may become more affordable than the other. Whether you are a first-time buyer, planning a move, or just curious about the buy vs rent question, this tool gives you a simple way to explore the trade-offs.

The calculator simulates each month over your chosen timeline. For buying, it estimates your mortgage payment, ongoing costs like property tax, insurance, maintenance, and HOA fees, plus expected home value growth. Your home equity is calculated as the home value minus the remaining loan balance. For renting, it projects rent increases and can add the investing of any monthly savings when renting is cheaper than owning. The result is a cumulative net cost line for each option.

How to use it:

  1. Enter your home price, down payment, loan rate, and loan term.
  2. Add your ongoing owner costs such as property tax, insurance, maintenance, and HOA.
  3. Fill in rent and expected annual rent increases.
  4. Set your time horizon and, if you want, an investment return rate for savings while renting.
  5. Click Calculate to see the side-by-side chart and summary.

This comparison is useful for estimating a break-even point, understanding opportunity cost, and exploring “what if” scenarios like higher interest rates or faster home appreciation. For example, you can test whether a lower monthly rent invested at a modest return could compete with home equity growth, or how rising maintenance costs affect the ownership path. It is also a practical way to evaluate a potential relocation, a larger down payment, or changes in the housing market.

Assumptions & limits

  • No tax reliefs or country-specific purchase/sale taxes (e.g., stamp duty) are modeled.
  • Property tax and maintenance are applied to the purchase price (constant) for simplicity.
  • Investment returns compound monthly from your chosen annual rate.
  • The chart shows cumulative net cost over time; lower is better.

5 Fun Facts about Renting vs Buying

5% rent hikes double fast

A steady 5% yearly rent increase roughly doubles your rent in about 14 years (rule of 72).

Rent snowball

Small extra payments are giant

Adding just £100/$100 to principal each month on a 25-year loan can chop years off and save tens of thousands in interest.

Principal hacks

Price dips hit leverage hard

A 10% home price drop on a 10% down purchase wipes out all equity and more—leverage magnifies both wins and losses.

Leverage swing

Invested rent savings can compete

If rent is cheaper than owning, investing the monthly difference at a steady return can outrun home equity in some scenarios.

Opportunity cost

Taxes & upkeep rival interest

Over long horizons, property tax + maintenance often rival or exceed the interest paid—owning costs aren’t just the mortgage.

Hidden ongoing

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