Housing
Rent vs Buy
Renting feels cheaper month to month; buying can win over the long run — or not, depending on how long you stay. This calculator compares the total cash cost of both paths over the years you expect to live there, and lays out every assumption it makes.
Assumptions used
- Run the comparison to see the assumptions applied to your numbers.
About this tool. It compares two projections built from your inputs and the assumptions above — results change quickly if you change the stay length or appreciation. Nothing you enter is stored, and the tool does not decide for you.
Worked example
A realistic scenario, already filled in. Open it, then change one number at a time to see what actually moves the result.
Renting at 1,500 against buying at 300,000
A 20% deposit, a 6% rate, ten years of staying and 2% appreciation. Change the years you stay to five and the picture moves, which is the single most useful thing this tool shows.
Open this example in the tool → The numbers live in the link, so you can bookmark it or send it to someone.
Frequently asked questions
Why do the assumptions change the answer so much?
Because the comparison runs for years. Change how long you expect to stay or the appreciation rate and the cheaper option can change. The tool states every assumption so you can test them instead of trusting one set.
What does the calculation leave out?
The non-financial side: the freedom to move, the stress of repairs, and wanting a place that is genuinely yours. Those belong in the decision, but they are not numbers this tool can weigh.
What is a realistic appreciation rate to use?
Nobody knows in advance. Try several, such as 0%, 2% and 4%. If buying only wins at the top of that range, the case for buying rests on a forecast rather than on the numbers.
Does it include maintenance and sale costs?
Yes, both are inputs. Leaving maintenance out, or forgetting the cost of selling, is the most common way a rent-versus-buy comparison flatters buying.