Mortgage Calculators
Rent vs Buy Calculator
Compare the total cost of renting with the cost of buying over the same period, allowing for appreciation, maintenance and the equity you build.
Lower total cost
Buying
- Total cost of renting
- $183,899
- Net cost of buying
- $102,962
- Equity at the end
- $203,842
- Difference
- $80,937
Excludes selling costs and any investment return on the deposit if you kept renting.
How this calculator works
Buy cost = payments + running costs + deposit − (sale value − remaining balance)
- sale value
- the home's value after appreciation over your horizon
- running costs
- maintenance, tax and insurance as a share of value
Selling costs and the return you could earn on the deposit if invested are not modelled.
Example calculation
Illustrative example — not advice
Worked example — the rent vs buy calculator as it loads, using the default figures below.
- 01Enter monthly rent: $2,000.
- 02Enter annual rent increase: 3%.
- 03Enter home price: $400,000.
- 04Enter deposit: $80,000.
- 05Enter mortgage rate: 6.25%.
- 06Enter mortgage term: 30 years.
- 07Enter annual home appreciation: 3%.
- 08Enter annual running costs (of value): 2%.
- 09Enter years you plan to stay: 7 years.
- 10Read the lower total cost from the results panel: Buying.
Lower total cost: Buying. Total cost of renting: $183,899. Net cost of buying: $102,962. Equity at the end: $203,842. Difference: $80,937.
These figures come straight from the calculator above running on the values listed, so you can retype them and confirm every number yourself. Change any input and the results update immediately. Illustrative only — not a quote, offer or recommendation.
Important considerations
- Short horizons usually favour renting because buying costs are front-loaded.
- Appreciation is the least predictable input — test a pessimistic figure too.
Related calculators
- Mortgage Affordability CalculatorHow much house your income and debts realistically support.
- Closing Cost CalculatorTotal cash needed to close, deposit included.
- Mortgage CalculatorEstimate your total monthly mortgage payment and see the amortisation schedule.
- Down Payment CalculatorDeposit required, loan needed and time to save it.
- Mortgage Payment CalculatorPrincipal and interest payment on any home loan amount.
- Mortgage Refinance CalculatorMonthly saving and break-even point on a refinance.
Terms used here
Frequently asked questions
Why can renting win even with rising rents?
Because interest, maintenance and transaction costs in the early years of ownership often exceed the equity built.
Disclaimer
Legamoney calculators are educational tools. Results are estimates based on the figures you enter and do not constitute financial, tax or legal advice.
Last reviewed 2026-08-01