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Buy or rent calculator

This calculator helps you decide whether it's better to buy or rent a home, based on your net investment gain. Fill out the information on the Buying a home and Renting tabs, then click Calculate to get your results.

Content Two!!!!!!!!!

Buying a home Renting a home

Location of Home:

Alberta

Price of home:

$

Down payment:

%

$

Original amortization period

Years

Mortgage rate:

%

Type of home:

New

Re-sale

Yearly property taxes:

%

$

Costs of buying a home:

%

$

Costs of selling a home:

%

$

Average yearly change in home value:

%

Yearly home maintenance cost/condo fees:

%

$

Yearly cost of home insurance:

$

Yearly cost of mortgage default insurance:

$0.00

Other costs:

$

Inflation:

%

Monthly rent payment:

$

Rental deposit:

$

Yearly rent increase:

%

Monthly cost of renter's insurance:

$

Other costs:

$

Invest the buy-rent difference?

Yes

Yearly expected investment return:

%

Results:

Based on your information, buying is better than renting after 8 years.
Select a year on the graph to see specific buying/renting details for that year.
Is home ownership for you?

Buying summary:

Investment value:		$100,000
Money invested:	-	$100,000
Total expenses:	-	$100,000

Net investment gain:		$100,000

Renting summary:

Investment value:		$100,000
Money invested:	-	$100,000
Total expenses:	-	$100,000

Net investment gain:		$100,000

Renting is better
Buying is better

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
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24
25
26
27
28
29
30

At end of year

The graph illustrates the difference between buying and renting over a thirty year term. Whichever option yields a larger net investment gain is your best result.

Period

Total Renting Expenses

Total buying expenses

Total savings

Year 1	$25,000	$25,000	$25,000
Year 2	$25,000	$25,000	$25,000
Year 3	$25,000	$25,000	$25,000
Year 4	$25,000	$25,000	$25,000
Year 5	$25,000	$25,000	$25,000
Year 6	$25,000	$25,000	$25,000
Year 7	$25,000	$25,000	$25,000
Year 8	$25,000	$25,000	$25,000
Year 9	$25,000	$25,000	$25,000
Year 10	$25,000	$25,000	$25,000
Year 11	$25,000	$25,000	$25,000
Year 12	$25,000	$25,000	$25,000
Year 13	$25,000	$25,000	$25,000
Year 14	$25,000	$25,000	$25,000
Year 15	$25,000	$25,000	$25,000
Year 16	$25,000	$25,000	$25,000
Year 17	$25,000	$25,000	$25,000
Year 18	$25,000	$25,000	$25,000
Year 19	$25,000	$25,000	$25,000
Year 20	$25,000	$25,000	$25,000
Year 21	$25,000	$25,000	$25,000
Year 22	$25,000	$25,000	$25,000
Year 23	$25,000	$25,000	$25,000
Year 24	$25,000	$25,000	$25,000
Year 25	$25,000	$25,000	$25,000
Year 26	$25,000	$25,000	$25,000
Year 27	$25,000	$25,000	$25,000
Year 28	$25,000	$25,000	$25,000
Year 29	$25,000	$25,000	$25,000
Year 30	$25,000	$25,000	$25,000

This chart shows the cumulative total buying and renting expenses for a given year, and the cumulative difference in net investment gain between buying and renting. If this number is negative, renting is better. If positive, buying is better.

*Any results or calculations displayed on this site are made available for information purposes only, and do not constitute financial or legal advice. By using this calculator, you agree to the Investor Education Fund Website and Social Media Terms of Use and Privacy Policy. View assumptions here.