What is this calculator?
Compare entered renting and ownership cash costs over a chosen period.
What can you use it for?
Use this tool to compare a financial scenario using the assumptions you control. Compare entered renting and ownership cash costs over a chosen period.
How to use it
- Enter monthly rent.
- Enter monthly unrecovered ownership cost.
- Enter upfront buying costs.
- Enter comparison years.
- Select Calculate (or Generate for random tools).
- Read the answer and any additional results below the form. Check the units and the limits of the method.
Formula and method
Ownership cash cost = monthly unrecovered ownership cost × 12 × comparison years+upfront buying costs
Ownership minus renting = (monthly unrecovered ownership cost-monthly rent) × 12 × comparison years+upfront buying costs
The formula uses the units and definitions shown above. Each input is substituted before the arithmetic is evaluated; the calculated output is rounded for display.
Worked example
Monthly rent: 50000, Monthly unrecovered ownership cost: 60000, Upfront buying costs: 500000, Comparison years: 5. The result is 3,000,000 (renting cash cost).
Assumptions and limits
Enter interest, maintenance, tax and insurance in ownership cost. Principal equity, appreciation and opportunity cost are excluded.
Frequently asked questions
What inputs does the Rent vs. Buy Calculator need?
Use monthly rent, monthly unrecovered ownership cost, upfront buying costs, comparison years. Read the answer and any additional results below the form. Check the units and the limits of the method.
What assumptions apply to the Rent vs. Buy Calculator?
Enter interest, maintenance, tax and insurance in ownership cost. Principal equity, appreciation and opportunity cost are excluded.