Rent vs Buy Calculator
Updated on 2 Oct 2026 · Checked by Aotob
Over 10 years, buying costs C$109,700 less than renting.
That is a C$550,000 home with 10% down at 4.8%, against C$2,600 a month in rent rising 3% a year. Buying pulls ahead in year 5, once your equity outgrows the closing and selling costs.
Over 10 years, buying wins
C$109,700cheaper
Buy if you will stay at least 5 years. Sell sooner and renting costs less.
Show the working
Buy = down 55,000 + closing 10,703 + payments 349,243 + tax 56,746 + upkeep 63,051
− (home 739,154 − mortgage left 374,096 − selling 36,958) = 206,642
Rent = rent 357,673 (2,600 a month, rising 3% a year)
− 5% a year earned on 65,703 you did not spend 41,320 = 316,353
Cost over time
Year by year
| Year | Renting | Buying | Cheaper |
|---|---|---|---|
| 2 | 56,601 | 90,450 | Rent |
| 4 | 116,370 | 124,484 | Rent |
| 6 | 179,469 | 155,389 | Buy |
| 8 | 246,071 | 182,879 | Buy |
| 10 | 316,353 | 206,642 | Buy |
Questions people ask
Does this include land transfer tax?
Yes. Closing costs include Ontario land transfer tax (C$7,475 here), about C$2,000 in legal and other fees, and the provincial sales tax on CMHC insurance. The insurance itself is added to the loan. Change the province to update them.
What if home prices do not rise?
Set home price growth to 0% under Advanced options. Over 20 years with no growth, buying pulls ahead in year 15.
Does renting count what my savings could earn?
Yes. If you rent, the down payment and closing costs stay invested. The renting cost is reduced by what that money earns, 5% a year by default.
Updated 2 Oct 2026Source: total cost of owning vs renting (CMHC)Checked by AotobAn estimate, not financial adviceReport an issue