Last updated: February 14, 2022
What this tool is all about:
This tool lets you compare the value of owning a property against renting it.
Many buyers are often torn between whether they should buy or rent. We built the rent vs buy calculator so that you can determine if it will be more profitable for you in the long run to own a property or rent.
This calculator will allow you to compare the value of owning a property against renting. It will take into account the property value, downpayment, and number of years you expect to live in the certain area. It could be more cost efficient if you plan on staying long term, as the value may go up over time and the costs to purchase or sell will be spread out over a longer period of time. If you don’t plan on staying for long, it would be better to rent. Depending on your specific situation, the rent vs buy calculator will give you a better understanding of which option is best for you.
To make this calculator simple to use, we’ve filled in some of the fields already. You can modify each field with your own information to calculate your rent vs buy cost amount.
Property value: Add your current property value, your purchase price, or the estimated purchase price of a listing you’re considering making an offer on.
Down payment: This is the amount of savings you currently have that can go towards your purchase. If you are using this calculator on a property you already own, you can put the amount of money you have already paid down in this field.
Downpayment (%): This is the percentage of savings you currently have that can go towards your purchase.
Current monthly rent expense: This is the amount of how much you currently pay for rent
Mortgage rate: By default, we’ve already included today’s 5-year fixed mortgage rate from Perch in this field. If you have another mortgage offer you would like to use, you can adjust the mortgage rate and mortgage type.
Property type: This is the type of property you would like to buy or rent.
Annual property taxes: This is the annual tax you pay which is levied by the governing authority of the jurisdiction where your property is located. If you’re not sure, leave it blank and we’ll estimate it for you.
Monthly rental income: If you are renting out a part of this property, include the amount of rent you are collecting each month
Expected annual property growth: This is the percent of how much you think your property will appreciate in the next year.
Minimum Number of Years Until Sell This Property: The number of years until you sell your property will greatly determine whether renting or buying will be more profitable.
Yes. Our rent vs buy calculator is completely free to use, along with all of our other calculators, rate comparison charts and articles.
Perch makes money through mortgage commissions which is paid by the lender. We don’t accept fees from lenders in exchange for preferential treatment. We only offer mortgages from regulated, trusted Canadian financial institutions. It’s always free to sign up for a Perch account or to use tools and calculators provided by Perch.