Mortgage vs Renting Calculator
Lifetime cost of buying vs renting.
Compare lifetime cost of buying with a mortgage against renting the equivalent property. Enter horizon to see total cost of each path.
What this tool does
Enter monthly mortgage, monthly rent, and horizon. The tool shows total cost of each path.
Enter Values
Formula Used
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Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
1,300 monthly mortgage vs 1,500 monthly rent over 25 years: mortgage pays 390,000, rent pays 450,000. On cash alone buying wins by 60,000. Add equity built in the property (often another 100k-200k) and buying typically wins over long horizons.
A worked example
Try the defaults: monthly mortgage of 1,300, monthly rent of 1,500, horizon of 25. The tool returns 60,000.00. You can adjust any input and the result updates as you type — no submit button, no reload. That's the real power here: seeing how sensitive the output is to one or two assumptions.
What moves the number most
The result responds to Monthly Mortgage, Monthly Rent, and Horizon. Two inputs usually tip the answer one way or the other. Identify which ones matter most by flipping each value past a round threshold and watching whether the winning option changes.
The formula behind this
Cash flow comparison only. Ignores home equity built, maintenance costs, and rent increases. For full comparison use rent-vs-buy calculator with those factors. Everything the calculator does is shown in the formula box below, so you can check the math against your own spreadsheet if you want.
Why this matters before you sign
A mortgage is usually the biggest single financial commitment a person makes. The difference between a well-chosen product and a hasty one can run into tens of thousands over the life of the loan. Running the numbers here before committing is the cheapest form of due diligence available.
What this doesn't capture
The figure excludes arrangement fees, valuation costs, legal fees, insurance, and any early-repayment charges — those can add several thousand to the headline cost. Rate changes at renewal for fixed-term deals will shift the picture further. Use this for the core interest/principal math and add the other costs on top.
Mortgage vs renting produces a cost gap based on the inputs provided.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
Cash flow comparison only. Ignores home equity built, maintenance costs, and rent increases. For full comparison use rent-vs-buy calculator with those factors.
References
Frequently Asked Questions
Does this include equity build?
What about maintenance?
Rent increases?
Opportunity cost of deposit?
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