Global Rent vs Buy Calculator – Compare Renting and Buying
Would renting or buying leave you better off?
Compare what you could have left after renting or selling a home. The calculation includes your mortgage, the running costs of ownership, rent, and what you might earn by investing money you do not spend on housing.
Enter local costs in your own currency. The example values are illustrative; choosing a currency does not load local house prices, tax rules or mortgage offers.
Your scenario
Comparison result
First-year average monthly housing costs
These are averages of the first 12 monthly bills, not total cash required to move. They exclude the down payment, buying charges and refundable rental deposit; the buying amount includes mortgage principal as well as interest.
At the selected horizon
Cash outflows include upfront costs and monthly bills, but do not tell the whole story: mortgage principal also builds equity. Both scenarios start with the same cash budget and can invest monthly savings.
Why does this result look this way?
These explanations use your current figures. Change an input to see how monthly costs, home equity and the time you stay affect the outcome.
Monthly costs in year one
Enter your figures to see the comparison.
What you keep when you sell
Enter your figures to see the comparison.
What if home prices stay flat?
Enter your figures to see the comparison.
What if you move after 3 or 15 years?
Enter your figures to see the comparison.
The flat-price scenario also recalculates property tax and maintenance, since this model expresses them as percentages of home value. The 3- and 15-year comparisons use the same loan terms and all your other assumptions.
What you could have left over time
Each line shows the estimated assets left if you sell or move out at that year. Both options can accumulate investments when their monthly housing costs are lower.
Chart uses the same simulation as the calculation cards.
Mortgage interest rate sensitivity
See how the same property, rent and holding period compare with a fixed mortgage rate up to two percentage points above or below your entered rate. Each row represents a different mortgage originated at that rate.
| Rate scenario | Mortgage rate | Monthly P&I | Projected advantage |
|---|---|---|---|
| -2 percentage points | - | - | - |
| -1 percentage point | - | - | - |
| Entered rate | - | - | - |
| +1 percentage point | - | - | - |
| +2 percentage points | - | - | - |
A negative interest rate scenario is not simulated. All other inputs remain unchanged. This is a scenario comparison, not a variable-rate mortgage or refinancing forecast.
How we compare renting and buying
1. Mortgage and home equity
The loan equals purchase price minus the down payment. For a fixed-rate loan, the monthly principal-and-interest payment is P = Lr / [1 - (1 + r)-n], where L is the loan, r is annual nominal rate / 12 and n is the term in months. A zero-rate loan pays L / n. The outstanding principal is reduced month by month.
2. The same starting cash for both options
Both paths begin with the same initial cash: the greater of buyer down payment plus purchase closing costs, or renter deposit. Any unspent initial cash is invested. Each month, the cheaper housing path invests the difference between its costs and the more expensive path.
3. What remains after a sale, and how savings grow
Buying assets = projected sale price minus selling costs and remaining loan, plus the buyer's investment account. Renting assets = renter's investment account plus the refundable deposit. The assumed investment return is an effective annual rate R (%), converted to a monthly growth factor g = (1 + R / 100)1/12. At each month-end, each account first grows by g, then receives the amount saved on housing that month. In symbols, Ibuy,t = Ibuy,t-1 × g + max(0, rent costt − owner costt), and Irent,t = Irent,t-1 × g + max(0, owner costt − rent costt). Monthly costs are compared before any investment contribution.
4. When buying first pulls ahead
Housing prices compound at the entered annual change rate. Rent, assessed property value and insurance/fees update at the beginning of each new year; the sale price is assessed at each year-end. Break-even is the first annual snapshot at which buying's net assets are at least renting's, not necessarily a permanent advantage.
StatRanker scenario model, methodology revision 9 November 2026. Calculations use full numeric precision; money figures shown to readers are rounded only for display. These are calculations from user-defined assumptions, not observed market values or an official forecast.
What the calculator doesn't include
- The figures stay in one currency and are not adjusted for general inflation. You must enter the prices, mortgage rate and taxes that apply where you live.
- Include local transfer taxes, notary costs and agent fees in the buying and selling costs. Income-tax deductions, capital-gains tax, moving bills, utilities and lost rental deposits are not calculated separately.
- Property tax and maintenance rise or fall with the modeled home value. Insurance and service charges follow the fee-inflation assumption. Optional loan insurance is charged on the outstanding balance throughout the loan; actual lenders may calculate it differently.
- The model uses fixed assumptions for home prices, rent and investment returns. It does not estimate market volatility, investment taxes or fees, housing quality, ease of moving, or whether you can qualify for a loan.
Questions about your rent vs buy results
Can I use this calculator outside the United States?
Yes. Choose your currency, then enter the rent, mortgage rate, property taxes, insurance and purchase fees relevant to your country. Currency selection does not automatically supply local rates or exchange conversions.
What if I sell sooner than planned?
Move the “How long will you stay?” slider to your new timeline. The calculation will use a different loan balance and estimated sale price. Buying and selling fees may matter much more when you stay only a few years. The 3- and 15-year examples above offer a quick comparison.
Why might buying win even if the monthly bills are higher?
Part of each mortgage payment reduces the loan balance. When you sell, that equity may be worth more than the money you could have accumulated by renting. It can also work the other way: a renter may finish with more money if buying costs or investment returns are high.
Does the mortgage payment include property tax and insurance?
The “Monthly mortgage (P&I)” figure is principal and interest only. The owner’s monthly-cost comparison adds property tax, home insurance, maintenance, service charges and any loan insurance you entered.
How does my down payment affect the result?
A larger down payment reduces the mortgage but leaves less cash available for investment. To compare fairly, the renter starts with the same overall cash budget. Money not needed for the rental deposit is invested in the model.
Does the calculator include tax breaks or capital-gains tax?
No. Tax rules vary by country and sometimes by property. Enter known buying and selling charges, but check local tax rules separately before relying on the result.
Methodology references
These references inform the cost categories and comparison method. No numeric market rates, house prices or rents are pulled from these sources.
Consumer Financial Protection Bureau: principal, interest, taxes and insurance - mortgage cost definitions.
Zillow Research: Rent vs Buy Comparison Methodology (2026) - methodological reference for equity, expenses and invested alternatives.
