Rent vs. own calculator
See how renting and owning could affect your long-term net worth, not just this month’s payment. Nothing you enter is saved.
Questions and references
How is this a fair comparison?
The renter starts by investing the cash the owner uses for the down payment and purchase costs. Each month, whichever option costs less contributes the difference to its own investment balance.
Why subtract selling costs from the owner?
The result compares net worth as if the home were sold at the end of the selected period. Selling costs are editable because commissions, legal expenses, preparation, and other costs vary.
What is included in the owner’s monthly cost?
Mortgage principal and interest, property tax, maintenance, condo fees, and home insurance. Mortgage principal builds equity, so it is reflected in the declining mortgage balance rather than treated as lost money.
What important things are not modelled?
Income tax, investment tax, moving costs, utilities shared by both options, renovation choices, special condo assessments, mortgage penalties, rate changes at renewal, rent control, and the lifestyle value or flexibility of either choice.