How to Use the Rent vs. Own Analyzer

This calculator is designed to help you determine whether buying a home or continuing to rent makes more financial sense based on your specific situation. It factors in the true all-in cost of ownership — including mortgage payments, taxes, insurance, maintenance, and HOA fees — and compares it against the long-term wealth-building potential of renting and investing the difference.

1. Set Your Purchase Price & Down Payment
   Enter the price of the home you are considering and your planned down payment percentage. The tool will calculate your exact loan amount and monthly mortgage payment automatically. Tip: Try different down payment amounts to see how it affects your monthly costs and break-even timeline.
2. Configure Your Mortgage Details
   Set your mortgage rate to your current pre-approval rate and select your loan term. To stress-test your decision, try sliding the rate 1–2% higher than your current rate to see how a renewal at a higher rate in 5 years would impact the comparison.
3. Enter Ownership Costs
   Input your property tax rate (typically 0.8%–1.5% in Canada, 0.5%–2.5% in the US), annual home insurance, HOA fees if applicable, and an annual maintenance budget. A standard rule of thumb for maintenance is 1% of the home's value per year, but newer homes may be lower.
4. Set Your Rent & Market Assumptions
   Enter your current or target monthly rent and the annual rate at which you expect rent to increase. Set the home appreciation rate based on your local market — the Canadian national average has historically been 4%–6%. If you were renting, the tool assumes you invest the down payment and monthly savings; set the investment return rate to reflect your expected portfolio return (e.g., 7% for a balanced index fund).
5. Choose Your Analysis Period
   Set the number of years you plan to stay in the home. This is critical — owning typically wins over longer horizons once equity builds up, while renting can win in the short term due to the high upfront cost of buying. Try 5, 10, and 20 years to see how the outcome shifts.
6. Analyze the Results
   Click Calculate Analysis to see the full dashboard:
   • Green verdict (Buying Wins): Over your chosen period, owning builds more net worth than renting and investing.
   • Yellow verdict (Renting Wins): Renting and investing the savings outperforms buying in this scenario.
   • Check the Break-even Year — this is the point where owning starts to pull ahead. If it's beyond your planned stay, renting may be the smarter financial choice.
   • Use the Net Worth Comparison chart to see exactly where the two paths diverge over time.