Free Rent vs Buy Calculator: calculate rent vs buy instantly with transparent formula, worked examples and tips. No signup.
True cost of buying (year N) = Mortgage payments + Maintenance + Insurance + Transaction costs − Equity built − Property appreciation
True cost of renting (year N) = Rent paid − Investment return on deposit
Break-even year = Year when cumulative buying cost < cumulative renting cost
The opportunity cost of the deposit is critical: a 50,000 deposit invested at 5%/year grows to 81,444 after 10 years. This foregone return is a real cost of buying that is often ignored in simplistic analyses.
Worked example: 300,000 property, 60,000 deposit, 4.5% mortgage rate, comparable rent 1,400/month, 3% annual house price growth. Break-even approximately 5–7 years in most markets at these parameters.