Calculators / Rent vs Buy Calculator
Rent vs Buy Calculator
Compare the total cost of renting against the net cost of buying and later selling, over the number of years you plan to stay.
How this calculator works
Renting is compared as a pure cost: your monthly rent, growing each year at the increase rate you enter, added up over the period. Buying is compared as a net cost: total cash you’d pay out (down payment, closing costs, mortgage payments, property tax, and maintenance), minus what you’d walk away with if you sold at the end of the period (the home’s appreciated value, less selling costs, less whatever mortgage balance remains).
This means buying can show a \”cost\” lower than renting even though you’re paying more each month — because part of every mortgage payment builds equity you get back when you sell, while every rent payment is gone for good.
What this doesn't capture
This calculator does not account for the opportunity cost of investing your down payment instead of using it to buy (money left in the market could grow too), renter’s or homeowner’s insurance, or one-time moving costs. It’s a starting point for comparing the two paths, not a complete financial plan.
Frequently asked questions
Why would buying ever show a lower cost than renting if the mortgage payment is higher?
Because a mortgage payment partly repays principal — money you get back as equity when you sell — while rent is a pure expense with no equity built. Over a long enough holding period, and with reasonable home appreciation, the equity built up can outweigh the extra monthly cost.
How many years should I compare?
Use how long you realistically expect to stay in the home. Buying carries high upfront and transaction costs, so a short holding period (2–3 years) often favours renting even in a rising market; a longer one (7-10+ years) more often favours buying.
Does this include land transfer tax?
Not separately — fold it into the “Closing costs” percentage, since land transfer tax rates vary significantly by province and city.
See what you could afford to buy
Check your maximum home price under the federal stress test.
Related
CompassNorth may earn a commission from partners featured in our comparisons. See our affiliate disclosure.