Continue your plan
Useful next calculations
When to use this calculator
- Before buying, renting, refinancing or reviewing a property investment.
- When you want to compare cash flow, tax, yield or ownership costs.
- When you need a fast estimate before speaking to an agent, lender or adviser.
- When you want to see how a rate or price change moves the result.
A realistic US planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
| Input | Value |
|---|---|
| Home Price ($) | $0.30 |
| Down Payment ($) | $70,000 |
| Mortgage Rate (%) | $280,000 |
| Monthly Rent ($) | 6 |
After entering these figures, review buy advantage vs renting, total rent paid and projected equity together rather than in isolation. Then rerun the tool with one input adjusted.
How to read your results
Buy Advantage vs Renting
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Total Rent Paid
The headline outcome of this calculation. It is most useful when read alongside the supporting metrics rather than in isolation.
Projected Equity
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Monthly Mortgage
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Method & assumptionsAuthoritative sources
This rent vs buy calculator evaluates the financial outcome of purchasing a home versus continuing to rent over a user-defined time horizon. The buy scenario totals all out-of-pocket costs — down payment, closing costs (estimated at 3%), monthly mortgage payments, annual property tax (1.1%), and annual maintenance (1%) — then subtracts the net equity realised at sale (future home value minus remaining mortgage balance minus selling costs of 6%). The rent scenario totals all rent paid over the same period. The difference represents the financial advantage or disadvantage of buying. A positive 'buy advantage' means that over the chosen period, buying costs less in total than renting. Assumptions such as 3% annual appreciation and fixed maintenance costs are simplified estimates; market conditions in your specific location may differ substantially.
Common mistakes
- !Using an assumption that is not supported by a current local quote, bill, statement or official source.
- !Treating a generic estimate as a lender, provider, payroll or tax authority decision.
- !Mixing monthly and annual inputs without converting them consistently.
- !Testing only one scenario instead of checking how a cautious assumption changes the result.
What to do next
- Run a second scenario with a cautious assumption so you can see the downside clearly.
- Compare the result with the related calculators below before making a decision.
- Check current local rules, eligibility and provider terms before applying or committing money.
- Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.
Frequently asked
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