Buying builds equity but ties up a deposit and adds interest, maintenance and transaction costs; renting keeps you flexible and leaves the deposit invested. This calculator compares total costs over your time horizon.
The break-even horizon is the key output: staying longer than it favours buying, shorter favours renting. Transaction costs (notary, taxes, agent fees) weigh heavily on short stays.
Assumptions such as home-price growth and investment returns dominate long-horizon results — try optimistic and pessimistic values before drawing conclusions.
The costs of buying that are easiest to forget are the ones that recur. Maintenance runs at roughly 1% of the property value a year over the long term, and service charges, building insurance and property taxes continue regardless of whether the mortgage is paid off — none of which a renter carries.
The deposit is not free either. Money tied up in a house is money not invested, and the honest comparison charges the buyer for that forgone return just as it charges the renter for rent. Leaving it out is the most common way a rent-versus-buy comparison tips itself toward buying.
Flexibility has a value that does not appear in either column. Selling a home costs several percent of its value and takes months, so a job that requires moving, or a household that may grow, is worth a great deal in a comparison that only counts money.
Frequently asked questions
Is renting throwing money away?
No — rent buys housing plus flexibility, while your deposit stays invested elsewhere. Buyers also pay unrecoverable costs: interest, taxes, maintenance and transaction fees. The honest comparison is between the unrecoverable costs on each side.
What is the break-even horizon?
The number of years of staying put after which buying becomes cheaper than renting. One-off purchase costs weigh heavily on short stays, which is why moving frequently favours renting.
Which assumptions matter most in rent vs buy?
Home-price growth, the return your invested deposit could earn, and how long you stay. Small changes in any of them can flip the answer — test optimistic and pessimistic scenarios.