Example result based on the prefilled values.
Buy Advantage vs Renting
$183,456.00
Total Rent Paid
$300,000.00
Projected Equity
$505,312.56
Monthly Mortgage
$3,715.47
Continue your plan
Useful next calculations
When to use this calculator
- Before comparing lenders, brokers, or repayment options.
- When you want to test how a different deposit, rate, or term changes affordability.
- When you need a quick estimate before using a formal quote or agreement in principle.
- When you are stress-testing your budget against a potential rate rise to see the impact on monthly payments.
- When you want to understand the full cost of borrowing — not just the monthly figure — before you commit.
A realistic US planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Home Price ($)
$0.30
Down Payment ($)
$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 — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.
How to read your results
Buy Advantage vs Renting
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Total Rent Paid
This is the headline outcome of the calculation, but it is most useful when read alongside the supporting metrics below it rather than in isolation. Try changing one input at a time and watching how this total moves to understand which driver has the biggest impact.
Projected Equity
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Monthly Mortgage
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
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.
- !Forgetting location-specific taxes, fees, eligibility rules or payroll deductions where they apply.
- !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.
- Use the result to prepare better questions for a lender, provider, adviser or employer rather than treating it as a final answer.
Frequently asked
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