How should I estimate home maintenance?

A common planning range is roughly 1% to 2% of the home value per year, adjusted for the property's age, condition, and local labour costs. Use your own inspection and repair budget when available.

How do property taxes affect rent vs buy?

Property tax is a recurring ownership cost. This calculator lets the starting rate rise annually, so higher taxes generally delay or remove the buying break-even point.

Are income taxes and mortgage deductions included?

No. Income tax, capital-gains tax, mortgage-interest deductions, and other personal tax reliefs are excluded because eligibility varies by person and jurisdiction. Manual purchase tax can be entered as an upfront cost.

Private mortgage insurance or mortgage insurance protects the lender when a buyer uses a smaller down payment. Enter its monthly cost and the loan-to-value threshold at which it ends.

Rent vs Buy Calculator: Should I Rent or Buy a Home?

Estimate whether buying or renting is cheaper over the length of time you expect to stay. The comparison includes mortgage payments, rent growth, home equity, investment opportunity cost, ownership expenses, and inflation.

What you’ll get: a plain-English recommendation, estimated break-even year, monthly and total cost difference, opportunity-cost breakdown, chart, and a year-by-year comparison. Example: a short stay often favours renting because buying and selling costs have less time to be recovered.

Private by design—your figures stay in your browser. This is an estimate, not financial advice.

Your assumptions

Buying

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)

Purchase tax / other upfront costs

Selling closing costs (% of sale price)

PMI / mortgage insurance (per month)

Stop PMI at loan-to-value (%)

Home Appreciation (% / year)

Renting

Monthly Rent

Annual Rent Increase (%)

Renter Insurance (per month)

Refundable security deposit

Broker, application & upfront rental fees

Extra renter utilities per monthUse a negative number if owning has higher utilities.

Comparison Horizon (years)

Alternative investment return (% / year)

The opportunity-cost model invests the down payment, buying costs, and any positive monthly ownership premium.

Advanced assumptions

Property tax increase (% / year)

Insurance & maintenance inflation (% / year)

General inflation / discount rate (% / year)

Results

Enter your figures to compare

Your decision summary will appear here before the chart.

Break-even point: —

Monthly difference at horizon: —

Owner net cost at horizon: —

Renter net cost at horizon: —

Buying initial costs—

Renting initial costs—

Buying recurring costs—

Renting recurring costs—

Opportunity cost—

Owner net sale proceeds—

Initial and recurring costs

Opportunity costs

Equity and net proceeds

Total inflation-adjusted cost

The chart and accessible table will show whether and when buying becomes cheaper.

Year-by-year cost comparison (lower is better)
Year	Avg buying / month	Avg renting / month	Buying net cost	Renting net cost	Cheaper
Load an example or enter values to generate the table.

Net cost equals cash outflows plus opportunity cost minus recoverable assets or sale proceeds. Lower is better. All totals are estimates and are not financial advice.

How this rent vs buy comparison works

The calculator runs a month-by-month mortgage and renting comparison for up to 30 years. Buying includes the down payment, purchase costs, mortgage principal and interest, PMI, property tax, insurance, maintenance, HOA charges, appreciation, and selling costs. Renting includes the deposit, fees, insurance, utilities difference, and annual rent growth.

Opportunity cost is always visible: money committed to the down payment and buying costs, plus any monthly amount by which owning costs more, is assumed to earn the alternative investment return. The refundable rental deposit remains an asset. Future net costs are discounted by general inflation so amounts at different horizons are easier to compare.

How to use it:

Enter your home price, down payment, loan rate, and loan term.
Add your ongoing owner costs such as property tax, insurance, maintenance, and HOA.
Fill in rent and expected annual rent increases.
Set your time horizon, investment return, and advanced inflation assumptions.
Click Compare to see the recommendation, breakdown, chart, and yearly table.

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

Income taxes, mortgage-interest deductions, capital-gains tax, moving costs, and financing fees are not automatically modeled.
Use the manual purchase-cost field for stamp duty, land transfer tax, legal fees, or inspections.
Investment returns, home appreciation, and inflation are smooth assumptions; real markets vary.
Lower inflation-adjusted net cost is better, but affordability, risk, and flexibility still matter.

Practical rent-or-buy decision factors

When renting usually wins

Renting often compares well for short stays, uncertain plans, high mortgage rates, or when rent is low relative to purchase prices.

Flexibility

When buying usually wins

Buying becomes more competitive with a long stay, manageable transaction costs, affordable financing, and sustained equity growth.

Long horizon

Hidden ownership costs

Property tax, insurance, PMI, maintenance, service charges, repairs, and selling fees do not build equity and can rival mortgage interest.

Beyond P&I

How long you plan to stay

Buying costs are front-loaded. A longer stay spreads them over more years, while selling costs make an early move particularly important to model.

Break-even

What this calculator excludes

It cannot price lifestyle preferences, job mobility, renovation surprises, market volatility, personal tax rules, or the value of housing stability.

Personal factors

Methodology and formulas

Monthly mortgage payment

M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]

P is loan principal, r is monthly APR, and n is the number of payments.

Balance and equity

Balanceₘ = Balanceₘ₋₁(1+r) − payment; Equityₘ = home valueₘ − Balanceₘ

Rent and investment growth

Rentᵧ = starting rent × (1 + rent growth)ʸ; Investmentₘ = Investmentₘ₋₁(1 + annual return/12) + ownership premiumₘ

Net cost and break-even

Buy cost = owner cash + opportunity cost − net sale proceeds; Rent cost = renter cash − refundable deposit. Real cost = nominal cost ÷ (1 + inflation)^(months/12). Break-even is the first month buy cost ≤ rent cost after renting was cheaper.

Last updated: 11 July 2026 · Reviewed by: Starlight Tools editorial team (calculation and accessibility review)
Assumptions used: monthly compounding, sale at each horizon, refundable deposit returned, and no personal tax benefits. Review every input for your country and circumstances.

Rent vs buy questions

How long do I need to stay for buying to make sense?

There is no universal answer. Buying needs enough time for equity and avoided rent to overcome purchase, financing, upkeep, and selling costs. Use the first break-even month reported above.

Is rent wasted money?

No. Rent buys housing, flexibility, and freedom from many repair and property-price risks. Owners also pay unrecoverable interest, tax, insurance, upkeep, and fees.

How should I estimate maintenance?

A rough starting range is 1%–2% of home value annually, adjusted for age and condition. A property-specific inspection and repair plan is better.

How do property taxes affect the result?

They add recurring cost without creating equity. The calculator grows property taxes separately each year, so a higher rate usually delays break-even.

Are taxes and deductions included?

Property tax and a manual purchase-tax field are included. Personal income tax, capital gains, mortgage deductions, and reliefs are excluded.

How does down-payment opportunity cost work?

The calculator compounds the down payment and buying costs at your alternative return, then adds positive monthly ownership premiums.

What is PMI?

Private mortgage insurance protects the lender on many low-down-payment loans. Enter its monthly amount and the loan-to-value threshold at which it ends.

Why do selling costs matter?

Agent, legal, and transfer costs reduce sale proceeds and can erase several years of apparent buying advantage.

How does inflation change the comparison?

Expense-specific rates grow future costs, while general inflation discounts both paths into present-value terms.