Rent vs Buy Calculator

Written byOleh Soloninupdated 25 September 2026

Currency

Property price

Down payment

Mortgage rate, %

Mortgage term, years

Rent a month

Comparison horizon, years

Price and rent growth, % a year

Investment return, % a year

Upkeep, % of the price a year

Include Russia's property tax deduction

A 13% refund on the price up to 2m roubles and on interest up to 3m roubles, if enough income tax was paid.

Advanced options

Buying costs

Valuation, insurance, registration and agent fees paid up front.

Result

Buyer's wealth: home minus loan plus savings

$275,572.00

Renter's wealth: investments

$165,612.00

Who is ahead at the end

the buyer is ahead by 109,960

Mortgage payment

$2,022.62

Home value minus the loan

$266,283.00

Verdict

buying is ahead from year 1 to the end of the horizon

Wealth year by year

Year     Home − loan     Buyer saves     Buyer wealth    Renter wealth
   1          95,577               0           95,577           88,991
   2         111,753               0          111,753           97,787
   3         128,556               0          128,556          106,353
   4         146,013               0          146,013          114,651
   5         164,155               0          164,155          122,641
   6         183,012              73          183,085          130,353
   7         202,618             873          203,491          138,393
   8         223,007           2,618          225,624          146,929
   9         244,216           5,393          249,608          155,991
  10         266,283           9,289          275,572          165,612

This result is informational only and is not professional advice.

Who has more after N years: the buyer or the renter

Compare buying a home with a mortgage against renting and investing the difference: the wealth each side holds after your chosen number of years, with rising prices and rent, upkeep, buying costs and a year-by-year table.

Setting a mortgage payment against rent is not a fair comparison: the buyer also puts down a deposit and pays for upkeep, but ends up owning the home, while the renter can invest the money that did not go on the mortgage. The calculator makes both sides spend the same each month and invests whatever either side has left.

At the end it compares wealth: for the buyer, the home's value minus the remaining loan plus any savings; for the renter, the invested deposit and the difference in monthly costs.

How to use

Enter the home price, deposit, mortgage rate and term.
Enter the rent for a similar home, the number of years to compare, the yearly rise in prices and rent, and the return on investments.
Add upkeep and, in the extra settings, buying costs.
Read each side's wealth, the verdict and the year-by-year table.

How the comparison works

Each month the buyer pays the mortgage and upkeep and the renter pays rent. Whoever spends less invests the difference at the return you enter; the renter invests the deposit and buying costs up front. Home prices and rent rise at the same yearly rate.

A 400,000 home with 80,000 down, a 6.5% mortgage over 30 years, rent of 2,000, prices rising 3% a year and a 6% investment return: the payment is 2,022.62. After 10 years the buyer holds 275,572 and the renter 165,612, so buying is ahead by 109,960, and it leads from the first year.

The mortgage rate against the investment return

The buyer pays interest on the loan and the renter earns a return on invested money, so the gap between the two rates drives the result. With the same home, rent and 6% return, a lower mortgage rate widens the buyer's lead:

Price 400,000, 80,000 down, 30 years, rent 2,000, 3% growth, 6% return, 1% upkeep. Worked out with this calculator.
Mortgage rate	Payment	After 10 years
4.5%	1,621.39	buyer ahead by 190,710
5.5%	1,816.92	buyer ahead by 150,821
6.5%	2,022.62	buyer ahead by 109,960
7.5%	2,237.49	buyer ahead by 68,287

How the horizon changes the answer

Time works for the buyer in this example: the loan shrinks while the home's value grows. The buyer's lead is 41,514 after 5 years, 109,960 after 10, 216,873 after 15 and 378,210 after 20. With a higher rate or a higher return on investments, renting can lead instead, so it is worth trying several horizons.

What tips the result

Buying gains from a low mortgage rate, high rent relative to the price, fast price growth and a long horizon. Renting gains from a high investment return and a short horizon, and it relies on the renter actually investing every month. Buying costs can be added as a separate field: the buyer pays them up front and the renter invests the same amount.

What this calculator shows

Each side's wealth at the end and the difference
The mortgage payment and the home's value minus the loan
From which year to the end the eventual winner is ahead
Both sides' wealth year by year

What to keep in mind

Both sides spend the same; any difference is invested at a constant return, with no tax on investment income.
Home prices and rent rise at the same rate; upkeep is a percentage of the purchase price.
Property tax, selling costs and changes in rates are not included; Russia's property tax deduction can be switched on.

Where the numbers come from

Checked against the standard mortgage payment formula; Russian Tax Code art. 220 for the Russian deduction · verified September 2026.

FAQs

Is it better to rent or buy?

It depends on the mortgage rate against the return you could earn on invested money, on the rent relative to the price, on price growth and on how long you stay. For a 400,000 home at 6.5% with a 6% return, buying is ahead by 109,960 after 10 years in this model.

Why does the renter invest money in the comparison?

To keep it fair: the buyer spends a deposit and more each month but ends up with a home. If the renter spent the difference instead, there would be nothing to compare with the buyer's home.

How long do I need to stay for buying to pay off?

Try several horizons. In the example the buyer is ahead from the first year and the lead grows from 41,514 after 5 years to 378,210 after 20.

What does the calculator leave out?

Property tax, selling costs, tax on investment income and changing interest rates. Buying costs can be added in the extra settings.

How close are the payment and the rent on the default figures?

Very close, which is what makes the comparison interesting. A price of 400,000 with 80,000 down leaves a 320,000 loan; at 6.5% over 30 years that is 2,022.62 a month against rent of 2,000. The mortgage payment alone is 22.62 above the rent, but the model also charges 1% of the price a year for upkeep, so the buyer starts out spending about 355.95 more a month. After that, everything turns on house prices, rent growth and what the deposit would have earned.

How much of the loan is left after ten years?

271,284 of the original 320,000. Ten years of payments come to 242,714, of which only 48,716 went to the debt — the rest was interest. Over the full thirty years the interest totals 408,142, more than the amount borrowed.

Worked example

A 400,000 home at 6.5%

Input: Price 400,000, 80,000 down, 6.5% over 30 years, rent 2,000, 10 years, 3% growth, 6% return

Output: Buyer's wealth 275,572; renter's wealth 165,612

Note: Buying is ahead by 109,960. At a 7.5% mortgage rate the lead falls to 68,287.

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Result

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