Rent vs Buy Calculator
Compare the net cost of buying a home with renting and investing the upfront cash, over the number of years you plan to stay.
Example: a 400,000 home with 20% down at 6%, 1.5% upfront costs, 1.5% yearly ownership costs, 3% growth, 6% selling costs, against 2,000 a month rent rising 3% with 5% investment growth: over 7 years buying costs less by $31,341.04. Every figure is your input; no tax rules are built in.
Build your scenario
Use your actual figures where available. The output is an educational estimate based on the assumptions below.
How it works
Buying: upfront cash (deposit plus buying costs) + every mortgage payment + yearly ownership costs − what you keep after selling (value less selling costs less the remaining loan). Renting: all rent paid − the growth you would have earned investing the upfront cash. Transfer taxes, property taxes, mortgage insurance and tax reliefs differ in the US, UK, Canada and Australia, so enter your own figures in the cost fields rather than relying on built-in rates.
Country presets (example defaults)
Choosing a country fills in example figures. Every field stays editable, and only the mortgage rate (and Canada's closing costs) come from a published source. The rest are round illustrative assumptions, not forecasts.
| Country | Mortgage rate | Term | Buying costs | Selling costs | Source for the rate |
|---|---|---|---|---|---|
| United States | 7.40% | 30 yrs | 1.5% | 6% | Freddie Mac PMMS, 30-year fixed average, 15 Oct 2026 |
| United Kingdom | 5.13% | 25 yrs | 2%* | 2% | Bank of England quoted rate, 2-year fix at 75% LTV (series IUMBV34), Sep 2026 |
| Canada | 4.5% (example only) | 25 yrs | 3% | 5% | No official average used; enter your lender quote. Closing costs: CMHC says 1.5% to 4% of the price (CMHC) |
| Australia | 6.15% | 30 yrs | 4%* | 2.5% | RBA lenders' rates, owner-occupier principal-and-interest new loans, Aug 2026 |
*UK and Australian buying costs depend mostly on stamp duty, so work yours out with the UK stamp duty calculator or the Australia stamp duty calculator and enter it. Ownership costs, price growth, rent increases and investment returns are illustrative in every country. Presets as of 22 October 2026.
Worked example
With the US defaults (7.40% rate), the mortgage is $2,215.62 a month. Over 7 years the net cost of buying is $149,094.58 and the net cost of renting is $148,888.46, so renting comes out $206.13 cheaper. At a 6% rate buying would come out ahead, which shows how much the rate matters.
Related calculators
- Mortgage calculator
- US mortgage affordability
- UK stamp duty calculator
- Canada mortgage stress test
- Australia stamp duty calculator
- Amortization schedule
Frequently asked questions
Is it cheaper to rent or buy?
It depends on how long you stay, prices, rates and rent. In the default example, over 7 years buying costs less by $31,341.04.
Why does the time frame matter?
Buying has large upfront and selling costs. The longer you stay, the more years those costs are spread over.
Are taxes included?
Only what you enter. Put expected transfer taxes in upfront costs and property taxes in yearly ownership costs.
Educational information only; not financial, tax, legal, or investment advice.