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Markets · Sports · News & CultureVol. 26 · Catalogue 39 · Issue 267 Thursday, September 24, 2026

Rent vs Buy Calculator

Calculator

Rent vs Buy

Baseline (50%)

Renting is not throwing money away and owning is not free — both carry costs that compound over decades. This compares the total cost of each path over your horizon, including the return you give up by locking cash into a down payment.

Year-by-year tables below each scenario show how the costs run as the years do — the mortgage payment is largely fixed while rents climb.

Your horizon & assumptions

How long you expect to stay put
Applied to the cash a buyer locks up
US M2 has grown ~5.5%/yr since 1990. Used to show whether appreciation is real wealth or just dollar dilution.
A Canadian mortgage is re-priced at every renewal. A US fixed loan keeps one rate for the life of the loan and never renews.
Adds a "Condo → House" path: buy the condo, live in it 5 years, then use its equity as the down payment on the house.
Past your first-renewal assumption, each term closes half the gap to this rate rather than holding one guess flat for twenty years.
Maint/repairs: 1.40× · Appreciation adj: +0.0% · Special assess: none · Rent: at guideline/input

If you rent

If you buy a condo

Scaled by the luck dial

If you buy a house

Transaction costs

On purchase
Applied to the purchase price on top of closing costs. Adjust to match your province, or estimate the effective rate.
Ontario charges extra land transfer tax on the portion of the price over $2M (2.5% on $2M–$3M, 3.5% above).
Required by law for high-ratio loans. Premium is a % of the mortgage, tiered by your down payment.
One-time, charged when you buy.
What you expect to spend on top of regular maintenance.
On sale & tax
Realtor fees when you sell — the split between buyer & seller agents, typically 4–5%.
Penalty for paying the loan off early, typical when you sell before the term ends.
Canada taxes 50% of a capital gain, the US taxes 100%. Applied to the opportunity cost.
Each month's mortgage principal is re-borrowed from a readvanceable HELOC and invested. The HELOC interest becomes tax-deductible, and the portfolio (net of the HELOC) adds to your equity. Canadian strategy — requires a readvanceable mortgage.
Reset to defaults
Result

Total cost over 25 years

Lowest net cost wins
Rent — cheapest

$996,836

net cost after equity & opportunity cost
Total spent$996,836
Cash needed up front$3,760
Condo

$1,639,879

net cost after equity & opportunity cost
Total spent$2,397,679
Equity at end$1,163,443
↳ Property value at end$1,228,887
↳ M2 money-supply benchmark$1,982,964
↳ Real gain vs M2 (after dilution)-$754,077
Selling costs$65,444
Agent commission$61,444
Legal fees$2,000
Staging & repairs$2,000
Land transfer tax$6,875
Moving costs$2,000
Opportunity cost$405,643
Cash needed up front$121,115
Payment jump at first renewal+$265.36/mo
Every renewal
TermFromRatePayment
1 Year 0 5.25% $2,492.87
2 Year 5 6.50% $2,758.23 +$265.36
3 Year 10 6.00% $2,671.95 −$86.28
4 Year 15 5.75% $2,641.83 −$30.11
5 Year 20 5.63% $2,633.88 −$7.95
House

$1,298,083

net cost after equity & opportunity cost
Total spent$2,443,048
Equity at end$1,766,165
↳ Property value at end$1,863,331
↳ M2 money-supply benchmark$2,974,446
↳ Real gain vs M2 (after dilution)-$1,111,115
Selling costs$97,167
Agent commission$93,167
Legal fees$2,000
Staging & repairs$2,000
Land transfer tax$12,075
Moving costs$2,000
Opportunity cost$621,200
Cash needed up front$185,475
Payment jump at first renewal+$398.04/mo
Every renewal
TermFromRatePayment
1 Year 0 5.25% $3,739.31
2 Year 5 6.50% $4,137.35 +$398.04
3 Year 10 6.00% $4,007.92 −$129.43
4 Year 15 5.75% $3,962.75 −$45.17
5 Year 20 5.63% $3,950.82 −$11.93
Trajectory

Net cost by year

Solid = your scenario · dashed = rosy / Murphy's
Breakdown

Where the money goes

Rent

Month one
Rent$1,900.00
Electricity$120.00
Internet$80.00
Renter's insurance$50.00
Over 25 years
Rent over horizon$847,415
Utilities$116,529
Insurance$29,132
Furnishings (one-time)$1,760
Moving (one-time)$2,000

Condo

Month one
Mortgage payment$2,492.87
• Interest (mo 1)$1,820.00
• Principal (mo 1)$672.87
• Payment after renewal$2,758.23
Property tax$390.00
Home insurance$15.24
Electricity$120.00
Heating/gas$80.00
Water/sewer$60.00
Internet$80.00
HOA / condo fees (yr1)$450.00
General maintenance$151.67
Major repairs (amortized)$80.56
Over 25 years
Mortgage paid over horizon$791,925
• Interest portion$375,925
• Principal portion$416,000
Property tax$186,641
Insurance$8,879
Utilities$141,500
HOA / condo fees (with escalation)$1,103,067
General maintenance$101,616
Major repairs (amortized)$46,935
Land transfer tax (one-time)$6,875
Closing costs (one-time)$5,200
Furnishings (one-time)$3,040
Moving (one-time)$2,000
Property value at end$1,228,887
↳ M2 money-supply benchmark$1,982,964
↳ Real gain vs M2 (after dilution)-$754,077
↳ Real gain vs inflation$264,836

House

Month one
Mortgage payment$3,739.31
• Interest (mo 1)$2,730.00
• Principal (mo 1)$1,009.31
• Payment after renewal$4,137.35
Property tax$715.00
Home insurance$87.08
Electricity$120.00
Heating/gas$80.00
Water/sewer$60.00
Internet$80.00
Lawn / yard$120.00
Snow removal & pest control$54.17
General maintenance$650.00
Major repairs (amortized)$314.58
Over 25 years
Mortgage paid over horizon$1,187,888
• Interest portion$563,888
• Principal portion$624,000
Property tax$342,176
Insurance$50,739
Utilities$141,500
Lawn / yard$49,941
Snow removal & pest control$22,543
General maintenance$435,496
Major repairs (amortized)$183,291
Land transfer tax (one-time)$12,075
Closing costs (one-time)$7,800
Furnishings (one-time)$7,600
Moving (one-time)$2,000
Property value at end$1,863,331
↳ M2 money-supply benchmark$2,974,446
↳ Real gain vs M2 (after dilution)-$1,111,115
↳ Real gain vs inflation$417,255
Rent, year by year

What rent costs as the years run

Every year of the horizon

The summary above gives one figure for the whole horizon, which hides the part the decision usually turns on: how far rent climbs by the final year — or how the interest share of a fixed mortgage payment shrinks as the principal share grows. Each column sums to the matching total above.

Year Rent / mo Rent Insurance Utilities Year total Cumulative
1 $1,926.34 $23,116 $850 $3,399 $27,365 $27,365
2 $1,984.94 $23,819 $871 $3,485 $28,175 $55,540
3 $2,045.31 $24,544 $893 $3,573 $29,010 $84,549
4 $2,107.52 $25,290 $916 $3,663 $29,869 $114,419
5 $2,171.62 $26,059 $939 $3,756 $30,754 $145,173
6 $2,237.67 $26,852 $963 $3,851 $31,666 $176,839
7 $2,305.73 $27,669 $987 $3,948 $32,604 $209,443
8 $2,375.87 $28,510 $1,012 $4,048 $33,570 $243,013
9 $2,448.13 $29,378 $1,038 $4,150 $34,566 $277,579
10 $2,522.59 $30,271 $1,064 $4,255 $35,590 $313,169
11 $2,599.32 $31,192 $1,091 $4,363 $36,646 $349,814
12 $2,678.38 $32,141 $1,118 $4,473 $37,732 $387,547
13 $2,759.85 $33,118 $1,147 $4,586 $38,851 $426,398
14 $2,843.79 $34,125 $1,176 $4,702 $40,003 $466,401
15 $2,930.29 $35,163 $1,205 $4,821 $41,190 $507,591
16 $3,019.41 $36,233 $1,236 $4,943 $42,412 $550,003
17 $3,111.25 $37,335 $1,267 $5,068 $43,670 $593,674
18 $3,205.88 $38,471 $1,299 $5,196 $44,966 $638,640
19 $3,303.39 $39,641 $1,332 $5,328 $46,301 $684,940
20 $3,403.87 $40,846 $1,366 $5,463 $47,675 $732,615
21 $3,507.40 $42,089 $1,400 $5,601 $49,090 $781,705
22 $3,614.08 $43,369 $1,436 $5,742 $50,547 $832,252
23 $3,724.01 $44,688 $1,472 $5,888 $52,048 $884,299
24 $3,837.28 $46,047 $1,509 $6,036 $53,593 $937,892
25 $3,953.99 $47,448 $1,547 $6,189 $55,184 $993,076
Condo, year by year

What condo costs as the years run

Every year of the horizon

The summary above gives one figure for the whole horizon, which hides the part the decision usually turns on: how far rent climbs by the final year — or how the interest share of a fixed mortgage payment shrinks as the principal share grows. Each column sums to the matching total above.

Year Payment / mo Interest Principal Tax Ins. Util. Maint. Repairs HOA / lawn Year total Cumulative
1 $2,492.87 $21,643 $8,272 $4,756 $259 $4,127 $2,589 $1,369 $7,560 $50,575 $50,575
2 $2,492.87 $21,198 $8,716 $4,925 $266 $4,231 $2,681 $1,404 $7,560 $50,981 $101,556
3 $2,492.87 $20,729 $9,185 $5,100 $272 $4,338 $2,777 $1,439 $7,560 $51,401 $152,957
4 $2,492.87 $20,235 $9,679 $5,282 $279 $4,448 $2,875 $1,475 $7,560 $51,834 $204,791
5 $2,492.87 $19,715 $10,200 $5,469 $286 $4,561 $2,978 $1,513 $15,833 $60,554 $265,345
6 $2,758.23 $23,772 $9,327 $5,664 $293 $4,676 $3,084 $1,551 $17,490 $65,857 $331,202
7 $2,758.23 $23,147 $9,951 $5,865 $301 $4,794 $3,193 $1,590 $19,322 $68,165 $399,367
8 $2,758.23 $22,481 $10,618 $6,074 $308 $4,915 $3,307 $1,630 $21,345 $70,679 $470,046
9 $2,758.23 $21,770 $11,329 $6,290 $316 $5,040 $3,425 $1,672 $23,580 $73,421 $543,468
10 $2,758.23 $21,011 $12,088 $6,514 $324 $5,167 $3,546 $1,714 $26,050 $76,414 $619,881
11 $2,671.95 $18,633 $13,431 $6,745 $332 $5,298 $3,672 $1,757 $28,777 $78,646 $698,528
12 $2,671.95 $17,804 $14,259 $6,985 $341 $5,432 $3,803 $1,802 $31,791 $82,217 $780,744
13 $2,671.95 $16,925 $15,138 $7,234 $349 $5,569 $3,938 $1,847 $35,120 $86,121 $866,865
14 $2,671.95 $15,991 $16,072 $7,491 $358 $5,710 $4,078 $1,894 $38,797 $90,392 $957,258
15 $2,671.95 $15,000 $17,063 $7,757 $367 $5,854 $4,224 $1,942 $42,860 $95,068 $1,052,325
16 $2,641.83 $13,360 $18,342 $8,033 $377 $6,003 $4,374 $1,991 $47,348 $99,827 $1,152,152
17 $2,641.83 $12,277 $19,425 $8,319 $386 $6,154 $4,529 $2,041 $52,305 $105,438 $1,257,590
18 $2,641.83 $11,131 $20,571 $8,615 $396 $6,310 $4,690 $2,093 $57,782 $111,589 $1,369,178
19 $2,641.83 $9,916 $21,786 $8,921 $406 $6,470 $4,857 $2,146 $63,833 $118,335 $1,487,513
20 $2,641.83 $8,630 $23,072 $9,239 $416 $6,633 $5,030 $2,200 $70,517 $125,737 $1,613,251
21 $2,633.88 $7,108 $24,499 $9,567 $427 $6,801 $5,209 $2,256 $77,901 $133,767 $1,747,018
22 $2,633.88 $5,694 $25,913 $9,908 $438 $6,973 $5,394 $2,313 $86,059 $142,690 $1,889,708
23 $2,633.88 $4,198 $27,409 $10,260 $449 $7,149 $5,586 $2,371 $95,070 $152,492 $2,042,200
24 $2,633.88 $2,616 $28,991 $10,625 $460 $7,330 $5,785 $2,431 $105,025 $163,262 $2,205,462
25 $2,633.88 $942 $30,664 $11,003 $472 $7,515 $5,990 $2,493 $116,023 $175,102 $2,380,564
House, year by year

What house costs as the years run

Every year of the horizon

The summary above gives one figure for the whole horizon, which hides the part the decision usually turns on: how far rent climbs by the final year — or how the interest share of a fixed mortgage payment shrinks as the principal share grows. Each column sums to the matching total above.

Year Payment / mo Interest Principal Tax Ins. Util. Maint. Repairs HOA / lawn Year total Cumulative
1 $3,739.31 $32,464 $12,407 $8,719 $1,480 $4,127 $11,097 $5,346 $2,114 $77,755 $77,755
2 $3,739.31 $31,797 $13,075 $9,029 $1,517 $4,231 $11,492 $5,481 $2,168 $78,790 $156,544
3 $3,739.31 $31,094 $13,778 $9,350 $1,556 $4,338 $11,900 $5,620 $2,222 $79,858 $236,403
4 $3,739.31 $30,353 $14,519 $9,683 $1,595 $4,448 $12,324 $5,762 $2,279 $80,962 $317,365
5 $3,739.31 $29,572 $15,300 $10,027 $1,635 $4,561 $12,762 $5,908 $2,336 $82,101 $399,465
6 $4,137.35 $35,658 $13,990 $10,384 $1,677 $4,676 $13,216 $6,057 $2,395 $88,053 $487,518
7 $4,137.35 $34,721 $14,927 $10,753 $1,719 $4,794 $13,686 $6,210 $2,456 $89,266 $576,784
8 $4,137.35 $33,721 $15,927 $11,136 $1,763 $4,915 $14,173 $6,367 $2,518 $90,520 $667,304
9 $4,137.35 $32,655 $16,993 $11,532 $1,807 $5,040 $14,677 $6,528 $2,582 $91,813 $759,117
10 $4,137.35 $31,517 $18,132 $11,942 $1,853 $5,167 $15,199 $6,693 $2,647 $93,149 $852,266
11 $4,007.92 $27,949 $20,146 $12,367 $1,900 $5,298 $15,739 $6,863 $2,714 $92,975 $945,241
12 $4,007.92 $26,707 $21,388 $12,806 $1,948 $5,432 $16,299 $7,036 $2,783 $94,399 $1,039,639
13 $4,007.92 $25,387 $22,708 $13,262 $1,997 $5,569 $16,879 $7,214 $2,853 $95,869 $1,135,508
14 $4,007.92 $23,987 $24,108 $13,734 $2,048 $5,710 $17,479 $7,396 $2,925 $97,387 $1,232,895
15 $4,007.92 $22,500 $25,595 $14,222 $2,099 $5,854 $18,101 $7,584 $2,999 $98,954 $1,331,849
16 $3,962.75 $20,040 $27,513 $14,728 $2,152 $6,003 $18,745 $7,775 $3,075 $100,030 $1,431,879
17 $3,962.75 $18,416 $29,137 $15,252 $2,207 $6,154 $19,411 $7,972 $3,153 $101,701 $1,533,581
18 $3,962.75 $16,696 $30,857 $15,794 $2,263 $6,310 $20,102 $8,174 $3,232 $103,427 $1,637,008
19 $3,962.75 $14,874 $32,679 $16,356 $2,320 $6,470 $20,817 $8,380 $3,314 $105,209 $1,742,217
20 $3,962.75 $12,945 $34,608 $16,938 $2,378 $6,633 $21,557 $8,592 $3,398 $107,049 $1,849,266
21 $3,950.82 $10,662 $36,748 $17,540 $2,439 $6,801 $22,324 $8,809 $3,484 $108,806 $1,958,072
22 $3,950.82 $8,540 $38,869 $18,164 $2,500 $6,973 $23,118 $9,032 $3,572 $110,768 $2,068,840
23 $3,950.82 $6,297 $41,113 $18,810 $2,564 $7,149 $23,940 $9,261 $3,662 $112,795 $2,181,635
24 $3,950.82 $3,924 $43,486 $19,479 $2,628 $7,330 $24,791 $9,495 $3,755 $114,888 $2,296,523
25 $3,950.82 $1,413 $45,996 $20,172 $2,695 $7,515 $25,673 $9,735 $3,850 $117,049 $2,413,573
Beyond money

Lifestyle scorecard

Best fit: House

Rate how much each factor matters to you (1–5), then recalculate.

FactorWeightRentCondoHouse
Flexibility to move 5 2 1
Yard / outdoor space 1 1 5
Freedom to renovate 1 3 5
Building equity / wealth 1 4 5
Security (can't be evicted) 2 5 5
Low maintenance headache 5 3 1
Outdoor health & space 2 2 5
Ownership pride / identity 1 4 5
Weighted total 54 72 96