Know your numbers
Rent vs Buy Calculator
Compare the costs of renting vs buying a home
What you'll work outAbout 3-5 minutes
- Breakeven horizon calculation
- Year-by-year cost comparison
- Equity vs investment growth
- Home appreciation tracking
- Rent increase projections
- Comprehensive cost analysis
Rent vs Buy Calculator Canada
Determine if renting or buying is the better financial decision for your situation.
Estimates for information only, not financial, tax or legal advice, and not a mortgage approval or rate offer. Your lender, lawyer or accountant will confirm the real numbers. Government rules used here were checked against official sources on September 24, 2026; see our editorial standards.
$100k - $2.5M
5% - 100%
$500 - $10k
Breakeven Horizon
After 5 years, buying will be cheaper than renting.
Cost
After 3 years, your total cost of homeownership (down payment, mortgage, taxes, etc.) for a $500,000 home would be $220,396. Your total cost to rent would be $92,727. Renting leaves you with $127,669 in your pocket (including the money you didn't spend on a down payment).
BUY
$220,396
RENT
$92,727
RENT GAIN
$127,669
Gain
After 3 years, if you buy, your home will have $170,895 in equity (available to you when you sell). However, if you instead rent and invest your down payment and the other money you save, at a 6% return rate it will earn around $39,094 in 3 years.
Home Equity (Buy)
$170,895
Your stake in the home
Investment Returns (Rent)
$139,094
Down payment + savings invested
Bottom Line
Looking at your gross costs, equity and investment potential, it's better for you to rent than buy if you plan to live in your home more than 5 years.
Year 1
Year 5
Year 10
Email me these results
Get your inputs and results in your inbox, with a link that reopens this calculator with the same numbers. Estimates only, not financial advice.
How it works
Is it better to rent or buy in Ontario?
Explore more Ontario real estate calculators or read our buying and selling guides.
Quick answer
Whether renting or buying is better depends on how long you'll stay, your rent versus the cost of owning, mortgage rates, and what your down payment could otherwise earn. A rent-vs-buy calculator compares the total cost of each over time — including a home's closing costs, ownership costs, and potential appreciation — to estimate a break-even point where buying starts to win.
How to use the rent vs buy calculator
- Enter your current (or expected) monthly rent.
- Enter the price, down payment and rate for the home you'd buy.
- Add how long you expect to stay.
- Review the break-even timeline and total cost of renting vs buying.
Rent vs Buy Calculator: worked example
- Monthly rent
- $2,600
- Home you'd buy
- $600,000 condo
- What it compares
- Total cost of each over your stay
- Output
- A break-even year where buying pulls ahead
Results depend heavily on rates, rent growth and appreciation assumptions — treat the break-even as a guide, not a guarantee.
Estimates for information only, not financial, tax or legal advice, and not a mortgage approval or rate offer. Your lender, lawyer or accountant will confirm the real numbers. Government rules used here were checked against official sources on September 24, 2026; see our editorial standards.
Rent vs Buy Calculator FAQ
How long do I need to stay for buying to pay off?
Because buying has high upfront costs (down payment, land transfer tax, legal fees), it usually takes several years to break even versus renting — the calculator estimates exactly when for your inputs.
Does renting mean I'm throwing money away?
Not necessarily. Renting avoids ownership costs and frees your down payment to be invested elsewhere; whether buying wins depends on your time horizon and the numbers.
What costs does buying add beyond the mortgage?
Property tax, maintenance, condo fees, insurance, and closing costs — the calculator includes these so the comparison is fair.
