Rent vs Buy Calculator (Canada)
Compare renting vs buying over a time horizon. See estimated monthly costs, total cost, equity, and the break-even year — with a clear chart and simple inputs.
Home purchase
Ownership costs (optional)
Renting
Assumptions
Results
Cumulative cost chart
Breakdown
| Metric | Value |
|---|---|
| Estimated mortgage payment (monthly) | $— |
| Owner costs (tax + insurance + maintenance, monthly) | $— |
| Estimated home value at end | $— |
| Estimated equity at end | $— |
| One-time closing costs | $— |
| Estimated selling costs | $— |
Rent vs buy in Canada: what this calculator helps you compare
Deciding whether to rent or buy a home in Canada isn’t just about today’s monthly payment. Buying typically means a mortgage payment plus property taxes, insurance, and maintenance — but it can also build equity over time. Renting may cost less upfront and offers flexibility, but you don’t build ownership in the home. This rent vs buy calculator estimates the total cost of each option over a chosen time horizon so you can compare them on one page.
How the rent vs buy calculation works
For buying, we estimate a standard monthly mortgage payment based on the home price, down payment, interest rate, and amortization period. We then add typical ownership costs such as property tax, insurance, and maintenance. We also include one-time closing costs at purchase and estimated selling costs when you exit after your horizon. Home value is projected using an annual appreciation rate. Your “net cost” of buying is the cash you paid over time minus the equity you may have when you sell (sale proceeds after selling costs and remaining mortgage balance).
What to watch when comparing rent and buy
The biggest drivers are your holding period and your assumptions. If you move in a few years, closing and selling costs may outweigh the equity you build. If you stay longer, mortgage principal paydown plus home appreciation can tilt the result toward buying. Rent increases matter too: even modest annual rent growth can significantly change the long-term cost of renting. Because every situation is different, treat this as a planning tool — and test a few scenarios (conservative vs optimistic) before making a decision.
FAQ
Is this calculator accurate for every province?
It’s a general planning estimate. Closing costs and property taxes vary by province and municipality, and lender rules can differ. Use your best local estimates for taxes, closing costs, and selling costs.
Does it include mortgage default insurance (CMHC)?
This version does not explicitly price CMHC insurance. If you want to account for it, you can increase the “closing costs” percentage or lower the down payment and compare scenarios.
What does “break-even year” mean?
Break-even is the first year where buying’s estimated net cost becomes lower than renting’s estimated total cost. If it never happens within your horizon, break-even is shown as “Not within horizon.”
Disclaimer: Estimates only. Taxes, insurance, market returns, home prices, and costs vary widely.