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Rent vs Buy Calculator

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What is Rent vs Buy Calculator?

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A rent vs buy calculator compares the total cost of renting a home against buying one over a given time horizon. It accounts for mortgage payments, opportunity cost of the down payment, maintenance, taxes, and rental increases.

Calkulon makes complex calculations simple — built for students and everyday problem-solvers.

How to Rent vs Buy Calculator

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  1. 1Cost to buy: mortgage payments + maintenance (1–2% of value/year) + property taxes + insurance − equity built + opportunity cost of down payment
  2. 2Cost to rent: rent + renters insurance + investing the down payment at market returns
  3. 3The "break-even point" is when the cumulative cost of buying drops below renting

Worked Examples

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Example 1
Given:£300k house · £60k deposit · 5% mortgage · vs £1,200/month rent
परिणाम:Break-even at approx year 7

Highly dependent on house price growth and investment returns

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Pro Tip

The most important variable is how long you plan to stay. The transaction costs of buying (stamp duty, legal fees, agent fees) typically take 3–5 years just to break even.

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Did you know?

The New York Times offers a detailed rent-vs-buy calculator; in most global cities, renting and investing the difference often outperforms buying over 10-year horizons unless house prices grow significantly.

केवळ माहितीच्या उद्देशाने. हे साधन व्यावसायिक वैद्यकीय सल्ला, निदान किंवा उपचारांचा पर्याय नाही. नेहमी पात्र आरोग्य व्यावसायिकांचा सल्ला घ्या.
Deep Dive

Read the full guide on how to use this calculator effectively

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Formula-verified for precision
Reviewed October 2026
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