§ Calculator · Housing

Rent vs buy

What this is

Which is cheaper over your horizon, after equity and opportunity cost?

Buying builds equity but costs cash for tax, maintenance, interest, and transaction fees. Renting frees the down payment to invest. Side-by-side net-cost comparison over a fixed horizon (default 7 yrs).

·Short horizon (<5 yr): renting usually wins because transaction costs dominate.
·Long horizon (>10 yr): buying usually wins because equity + appreciation outpace rent.
·High investment return + low appreciation: renting + investing beats buying.

Purchase priceDown paymentMortgage rate

Amortization (yr)Horizon (yr)Property tax / yrMaintenance / yr (% of price)

Home appreciation

Monthly rentRent inflation

Investment return on down pmt

Buy net cost

$158,664

Rent net cost

$180,742

Verdict

Buying ahead by $22,078

Equity at sale

$344,255

Opportunity gain (invest)

$72,852

Mortgage interest paid

$178,321

Buy NetCost = mortgage + tax + maintenance + down payment − equity at sale. Rent NetCost = total rent paid − opportunity gain on the would-be down payment.

Disclaimer

Educational, not financial advice. Output is generated by an AI assistant using simplified assumptions. Tax rates, contribution limits, and benefit amounts change annually; confirm with a CFP, CPA, or the relevant Canadian regulator (CRA, FSRA, OSC, IIROC) before acting. Excludes principal residence exemption (no cap gains on sale), HST/closing costs, and lifestyle factors (yard, schools, neighbourhood). Run multiple horizons to find your break-even.