Rent vs Buy Calculator Canada
Compare renting and buying in Canada using mortgage costs, rent growth, closing costs, home appreciation, and invested down-payment alternatives.
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Renting advantage
$41,310
Renting and investing comes out ahead under these assumptions.
Renting may cost less.
Under these assumptions, renting has the stronger long-term outcome.
View chart data
| Years | Rent | Buy |
|---|---|---|
| 0 | $2,400 | $11,627 |
| 1 | $2,460 | $10,201 |
| 2 | $2,522 | $7,579 |
| 3 | $2,585 | $6,763 |
| 4 | $2,649 | $6,401 |
| 5 | $2,715 | $6,221 |
| 6 | $2,783 | $6,133 |
| 7 | $2,853 | $6,098 |
| 8 | $2,924 | $6,098 |
| 9 | $2,997 | $6,120 |
| 10 | $3,072 | $6,159 |
Buying includes simplified property tax, maintenance, and selling cost assumptions.
What does rent versus buy compare?
Compare renting and buying over time using a simplified net worth model. The tool builds two paths over the selected horizon: buying accumulates home equity after mortgage and ownership costs, while renting keeps the purchase cash invested and grows rent over time. It compares each path after recurring costs, investment growth, and selected transaction costs.
With the values entered, the calculator estimates renting advantage of $41,310. This scenario uses monthly rent of $2,400, home price of $650,000, down payment of $65,000, and mortgage rate of 5%. The supporting results show rent and invest net worth of $322,881 and buy net worth of $281,571, which makes the main drivers easier to compare. Renting and investing comes out ahead under these assumptions. Focus on the gap between renter and buyer net worth at the horizon and the first break-even year. A result that changes sharply with the horizon, rent growth, home appreciation, or investment return means the decision depends more on time and behaviour than on one headline price.
Formula or decision method
Rent vs Buy Calculator decision method
The tool builds two paths over the selected horizon: buying accumulates home equity after mortgage and ownership costs, while renting keeps the purchase cash invested and grows rent over time. It compares each path after recurring costs, investment growth, and selected transaction costs.
Data provenance
The model uses the values entered above rather than silently substituting a household profile. Personal balances, prices, rates, dates, and household facts should come from current statements, quotes, or official records, while suggested assumptions should be tested above and below the starting case.
Sensitivity test
| Input | Calculated result |
|---|---|
| Monthly rent: $2,160 | $65,389 |
| Monthly rent: $2,400 | $41,310 |
| Monthly rent: $2,640 | $17,231 |
Frequently asked questions
Does this predict home prices?
No. Appreciation is an assumption you control.
Why include investment return?
Renters may invest the cash that would otherwise go toward a down payment or higher monthly ownership costs.
What if I will not invest the renter surplus?
Lower the investment return or compare a cash-savings case. Renting looks different if the monthly difference gets spent instead of invested.
What if I might move in three years?
Use a short time horizon and include selling costs. Transaction costs can make buying harder to justify over a short stay.
Renting vs buying in Canada
The better choice depends on local prices, rent, interest rates, time horizon, and lifestyle flexibility.
Hidden costs of home ownership
Owners should budget for property tax, insurance, maintenance, repairs, condo fees, closing costs, and selling costs.
Opportunity cost explained
Money used for a down payment could otherwise be invested. This is a major part of rent-versus-buy comparisons.
Disclaimer
Rent-versus-buy results depend on local prices, rent, rates, taxes, maintenance, selling costs, time horizon, and whether renter savings get invested. Use this comparison before choosing what numbers to verify with listings and lender quotes.
See also
- All calculators
- All templates
- Cost of Selling a Home Calculator — See what selling costs after a few years of ownership, and whether you would walk away with less than you put in.
- Employment Verification Letter
- Mortgage Affordability Calculator Canada — Estimate how much home you may afford in Ontario, BC, Alberta, Quebec, Manitoba, Saskatchewan, Atlantic Canada, and the territories using income, debt, down payment, rates, owner costs, and mortgage affordability ratios.
- Mortgage Calculator — Estimate a monthly Canadian mortgage payment from home price, down payment, rate, and amortization.
- Resignation Letter
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Author: Thomas Tremblay
Updated: August 6, 2026
Cite: Canooq.ca, Rent vs Buy Calculator