What does 'net cost' mean here?

Net cost is total cash outflows minus assets accumulated. For owners, we subtract estimated home equity. For renters (if enabled), we subtract invested savings.

Are taxes and local fees included?

The tool provides generic fields (property tax, maintenance, insurance). It does not handle country-specific taxes like stamp duty or tax reliefs.

Yes. All calculations run entirely in your browser and are not uploaded or stored.

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)

Currency

Home Price

Down Payment (%)

Mortgage APR (%)

Term (years)

Property Tax (% / year)

Home Insurance (per month)

Maintenance (% of price / year)

HOA/Service Charges (per month)

Closing Costs (% of price)

Home Appreciation (% / year)

Renting

Monthly Rent

Annual Rent Increase (%)

Renter Insurance (per month)

Comparison Horizon (years)

Assume renter invests savings

Investment Return (% / year)

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

We simulate month-by-month over your chosen horizon. For buying, we estimate mortgage payments, property costs you enter (tax, insurance, maintenance, HOA), and home value growth. Equity is the home value minus the remaining loan balance. For renting, we account for rent increases and optional investing of savings.

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