Compare the long-term cost of renting vs buying a home, including equity, appreciation, taxes, and maintenance.
Rates as of Q2 2025 (example)
This calculator compares the net cost of buying a home (down payment, mortgage payments, property tax, and maintenance, minus the equity you build up through paydown and appreciation) against the total cost of renting over the same period — helping you see which option may leave you financially ahead over your chosen time horizon.
For buying, this calculator tracks your mortgage balance over time (using the standard amortization formula), accumulates your mortgage payments and property tax/maintenance costs, and calculates your home equity (home value minus remaining mortgage balance) at the end of the comparison period — net cost of buying is your down payment plus all payments made, minus the equity you've built. For renting, it simply accumulates your rent payments, increasing each year by your entered rent increase rate, with no equity built.
Formula: Net Cost of Buying = Down Payment + Cumulative Mortgage Payments + Cumulative Property Tax & Maintenance − Home Equity (Home Value − Remaining Mortgage Balance). Total Cost of Renting = sum of annual rent, each year's rent = previous year's rent × (1 + Rent Increase Rate). Home Value each year = Home Price × (1 + Appreciation Rate)year.
Example: A CA$500,000 home with a 20% down payment (CA$100,000), a 5.5% mortgage rate (example rate — enter your actual rate) over 25 years, compared against CA$2,000/month starting rent (3% annual increases), with 3% home appreciation and 2% combined property tax and maintenance, over a 10-year comparison: the net cost of buying would be roughly CA$141,506, while the total cost of renting would be roughly CA$275,133 — meaning buying would leave you roughly CA$133,627 ahead in this scenario. (Note: this example is for illustration purposes only — actual outcomes depend heavily on local market conditions, which vary widely and can change.)
The rent-vs-buy decision in Canada depends heavily on local market conditions, which vary enormously between cities and even neighbourhoods — home prices, rents, and their respective growth rates in a particular market can make buying clearly favourable in one area and renting clearly favourable in another. This calculator does not include one-time closing costs when buying, such as land transfer tax (see our Land Transfer Tax Calculator), legal fees, and home inspection costs, which can add thousands of dollars to the upfront cost of buying — consider adding these to your down payment for a more complete comparison. It also doesn't account for the opportunity cost of your down payment — money tied up in home equity isn't earning investment returns elsewhere, which matters more if expected investment returns exceed home appreciation. If your down payment is below 20%, you'll also need mortgage loan insurance (see our CMHC Insurance Calculator), adding to your costs. On the renting side, this calculator doesn't include the flexibility value of renting (easier to relocate for work, less responsibility for repairs) or potential investment of the difference between renting costs and the costs of owning. The "right" answer often depends as much on your personal circumstances — how long you plan to stay, your need for flexibility, and your risk tolerance — as on the pure numbers.
No. This calculator focuses on ongoing costs (mortgage payments, property tax, maintenance) and equity built over time. One-time closing costs like land transfer tax, legal fees, and inspections are not included - add an estimate of these to your down payment for a more accurate comparison. See our Land Transfer Tax Calculator.
Buying involves significant upfront costs (down payment, closing costs) that are "spread" over however long you own the home - the longer you stay, the more these upfront costs are amortized against the benefit of building equity and potential appreciation. Over short periods, renting often looks more favourable; over longer periods, buying often catches up or overtakes renting, assuming reasonable appreciation.
No. This calculator doesn't model what your down payment could have earned if invested elsewhere instead of being used as a down payment. If you believe investment returns would significantly exceed home appreciation over your time horizon, renting and investing the difference could be more favourable than this calculator suggests - though this involves investment risk that buying a home (which you also live in) does not carry in the same way.
Very sensitive. Home appreciation directly affects your equity at the end of the comparison period, which is subtracted from your total buying costs - a higher appreciation rate makes buying look more favourable, and a lower (or negative) rate makes it look less favourable. Since appreciation rates vary enormously by location and time period and are inherently uncertain, try a range of rates to see how sensitive your result is.
A down payment below 20% requires mortgage loan insurance (CMHC insurance), which adds a premium typically added to your mortgage principal - increasing your loan amount and monthly payments beyond what this calculator shows if you don't account for it. See our CMHC Insurance Calculator to estimate this additional cost and factor it into your buying scenario.
This calculator provides a financial comparison based on the assumptions you enter, but the right choice also depends on non-financial factors: how long you plan to stay in the area, your need for flexibility (e.g., for work relocations), your tolerance for the responsibilities of homeownership (maintenance, repairs), and your local market conditions. Use this calculator as one input among several, and consider discussing your specific situation with a financial adviser or real estate professional.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial or real estate advice. Home appreciation, rent increase, interest, and other rates are examples only and do not represent guarantees - actual market conditions vary significantly by location and over time and can result in very different outcomes, including home values declining. This calculator does not include closing costs, mortgage insurance premiums, the opportunity cost of your down payment, or income tax considerations. Always consult a qualified financial adviser or real estate professional for advice specific to your situation and local market.