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Rent vs Buy Calculator

Buy, or rent and invest the deposit? Compare your net worth both ways, with every cost of owning included, and see how long you would need to stay for buying to pay off.

Written by the CalcTortoise editorial team · How we work

years
years
Assumed: 4% buying costs (taxes and fees), 1.5% a year upkeep, price rising 3% a year, 3% selling costs, rent rising 3% a year, 6% investment return. Change

The renter invests the down payment, buying costs and whatever is left after rent each month.

After 10 years, buying is ahead by

$25,699

After 10 years, buying puts you ahead by $25,699. Buying comes out ahead only if you stay 6 years or more.

Net worth if you buy
$213,661
Net worth if you rent
$187,961
Total rent paid
$178,837
Total mortgage interest
$105,781
Break-even
6 years
Home value at the end
$403,175

Illustration only, not investment, tax or legal advice.

Net worth: buy vs rentIf you buyIf you rent

Buy vs. rent by year

YearNet worth, buyNet worth, rentOwning costsRentHome value
Year 1$64,679$82,275$21,398$15,600$309,000
Year 2$78,872$92,826$21,535$16,068$318,270
Year 3$93,602$103,660$21,676$16,550$327,818
Year 4$108,889$114,783$21,821$17,047$337,653
Year 5$124,756$126,201$21,970$17,558$347,782
Year 6$141,228$137,922$22,124$18,085$358,216
Year 7$158,327$149,952$22,283$18,627$368,962
Year 8$176,081$162,297$22,446$19,186$380,031
Year 9$194,517$174,965$22,615$19,762$391,432
Year 10$213,661$187,961$22,788$20,354$403,175

How to use this calculator

  1. Enter the home price, deposit, mortgage rate and term.
  2. Add buying costs, running costs, expected price growth and selling costs.
  3. Enter comparable rent, rent growth, your investment return and how long you plan to stay.

Frequently asked questions

Is it better to rent or buy?

It depends chiefly on how long you stay. In the example — a $300,000 home or $1,300 a month in rent — buying is ahead by $25,699 after 10 years; over 20 years, buying is ahead by $113,699.

What does the break-even year mean?

The first year in which your net worth as an owner overtakes your net worth as a renter. In the example it is year 6.

Which costs of owning are included?

Buying taxes and fees, mortgage interest, running costs such as property tax, insurance and repairs, and selling costs when you move. The renter invests the deposit and buying costs instead.

Are taxes on gains included?

No. Results are before tax; tax on investment returns or on the sale of a home varies by country.

Sources and method

Standard compound-interest formulas, tested against worked examples. Nothing here depends on outside data; the rates you type in are your own assumptions.

No outside data is used. The numbers you type in are the only inputs.

Page and formula last reviewed . How we calculate · Editorial policy · Corrections and change log

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Last updated 10 October 2026. For information only — not financial advice. Check the final figures with your lender or bank.