Rent vs Buy Calculator
Should you buy or keep renting? This calculator compares an owner’s equity after several years against a renter who invests the equivalent down payment and any monthly savings, using Edmonton-typical defaults you can adjust.
Buying vs renting
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- Owner equity
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- Renter investment portfolio
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- Total owner outlay
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- Total rent paid
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- Ending home value
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- Monthly mortgage payment
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Simplified model: it compares the owner’s equity against a renter who invests the equivalent down payment and any monthly amount saved versus owning.
Assumptions & sources
Rates change. Here is exactly what this calculator uses and when each figure was last confirmed.
- Canadian fixed-rate mortgages use semi-annual compounding. i = (1+r/2)^(2/12)-1.Effective January 1, 2026 · Source
- Projections assume the rate, appreciation, and rent-increase figures you enter hold steady for the full period. They will not — treat the comparison as directional, not predictive.
Estimates only — for general information, not financial, mortgage, tax, insurance, or legal advice. Confirm all figures with the appropriate licensed professional.
Frequently asked questions
How does this rent vs buy comparison work?+
It is a simplified model. Each month the owner pays the mortgage, property tax, insurance, and maintenance, while their home grows in value. The renter pays rent and invests the equivalent down payment plus any monthly amount they save versus owning. After your chosen number of years we compare the owner’s equity (home value, less selling costs and remaining mortgage) against the renter’s investment portfolio.
Why might renting come out ahead?+
Buying often wins over long horizons, but if home appreciation is modest, investment returns are strong, or you sell after only a few years (when transaction costs and early-mortgage interest dominate), renting and investing the difference can leave you further ahead. Try lowering the appreciation rate or shortening the years to see the effect.
What costs are not included?+
The model excludes closing and legal fees on purchase, CMHC insurance, mortgage renewal rate changes, condo fees, tax on investment gains, and moving costs. Treat the result as a directional estimate, not a precise forecast.