Customizable Rent vs Buy Investment Calculator
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Renting CaseOwning CaseComparison
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To edit with your own numbers: with a Google Docs account, go to File -> make a copy
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Renting AssumptionsHouse and Mortgage AssumptionsRates as a percent of the house value
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Or, download to excel with File -> Download asInitial monthly rent:$2,100House purchase Price$510,000Mortgage Interest rate:Maintenance %Property tax %Insurance %House AppreciationAfter x yearsWinner
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Then in your copy, change the assumptions and figures to suit your situationDownpayment (needs % sign)10.00%First 5 Years3.49%1.10%0.86%0.23%2.00%OneRenting by $53165
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Amortization (Max 30)25Next 5 Years:4.50%1.10%0.95%0.24%2.00%FiveRenting by $43604
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Input fields are in 12-pt fontOntario Land Transfer Tax$6,675Final 15 Years5.50%1.10%1.22%0.25%2.00%TenRenting by $67414
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Conclusion in blue to the right.CPI rate
(rent increase)
Investment returnRenters insurance
(% of monthly rent)
Toronto Land Transfer Tax$5,925TwentyRenting by $261303
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For more on the spreadsheet:First 5 Years2.00%7.00%1.00%Title Insurance250Calculated Monthly paymentBuilt-in assumptions:ThirtyRenting by $716481
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http://www.holypotato.net/?p=1073Next 5 Years:2.00%7.00%1.00%Legal Fees (including disbursments)1500First 5 Years2,344.17CMHC premium is capitalized to mortgage
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Final 15 Years2.00%7.00%1.00%Home Inspection400Next 5 Years:2,556.01Other closing costs are paid as cash
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(Note: If you don't see the fileCMHC insurance2.40%Final 15 Years2,726.65Buyer is not a first time homebuyer
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menu, click "Go to spreadsheet view" at the top/bottom)Investment Tax Rate:10.00%Total Cash to be used toward purchase$65,750.00House is in Ontario
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Updates from March 8, 2014:Or, enter 0 here and an after-tax rate of investment return above
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http://www.holypotato.net/?p=1235Other Assumptions
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Also be sure to check out the Value of Simple: A Practical Guide to Taking the Complexity Out of InvestingCommission (on sale only)6.00%
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http://ValueofSimple.caHouse is in Toronto (416)Yes
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Net worth comparison without selling home Assuming house is sold (with sales commission, but no mortgage penalty), and investment portfolio taxed
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YearCost of RentingSurplus vs owning (annual)Investment portfolioMortgage (P+I)MaintenanceProperty TaxInsuranceAnnual Cash OutlayMortgage Balance (opening)Beginning of year House ValueBeginning of year Owner's EquityTiming of comparisonRenter ahead byRenter ahead by
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201525,45213,84365,75028,1305,6104,4021,15339,295470,016510,00039,984At time of Purchase25,766$56,366
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201625,96113,55784,68028,1305,7224,4901,17639,518457,982520,20062,218After 1 year22,462$53,165
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201726,48013,266104,63928,1305,8374,5801,19939,746445,523530,60485,081After 2 years19,559$50,246
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201827,01012,968125,69428,1305,9534,6721,22339,978432,627541,216108,589After 3 years17,105$47,650
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201927,55012,665147,91528,1306,0724,7651,24840,215419,276552,040132,764After 4 Years15,151$45,420
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202028,10115,472171,37730,6726,1945,3561,35143,573405,455563,081157,626After 5 Years13,752$43,604
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202128,66315,168199,38830,6726,3185,4631,37843,832392,599574,343181,743After 6 Years17,644$46,918
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202229,23614,858229,04430,6726,4445,5721,40644,095379,158585,830206,671After 7 Years22,373$50,887
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202329,82114,542260,45630,6726,5735,6841,43444,363365,106597,546232,440After 8 Years28,015$55,577
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202430,41714,219293,73930,6726,7045,7981,46344,637350,414609,497259,084After 9 Years34,655$61,060
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202531,02617,669329,01832,7206,8397,5831,55448,695335,053621,687286,634After 10 Years42,383$67,414
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202631,64617,368370,33732,7206,9757,7341,58549,015320,186634,121313,934After 11 Years56,402$79,814
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202732,27917,061414,23632,7207,1157,8891,61749,341304,491646,803342,312After 12 Years71,924$93,443
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202832,92516,748460,89132,7207,2578,0471,64949,673287,920659,739371,819After 13 Years89,073$108,409
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202933,58316,429510,48832,7207,4028,2081,68250,012270,426672,934402,508After 14 Years107,980$124,823
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203034,25516,103563,22632,7207,5508,3721,71650,358251,956686,393434,437After 15 Years128,789$142,809
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203134,94015,771619,31832,7207,7018,5391,75050,711232,456700,121467,664After 16 Years151,654$162,498
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203235,63915,432678,99332,7207,8558,7101,78551,070211,870714,123502,254After 17 Years176,740$184,034
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203336,35215,086742,49432,7208,0128,8841,82151,438190,135728,406538,271After 18 Years204,223$207,567
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203437,07914,733810,08332,7208,1739,0621,85751,812167,188742,974575,786After 19 Years234,297$233,265
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203537,82014,373882,03732,7208,3369,2431,89552,194142,962757,833614,871After 20 Years267,166$261,303
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203638,57714,006958,65632,7208,5039,4281,93252,583117,385772,990655,604After 21 Years303,052$291,874
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203739,34813,6321,040,25932,7208,6739,6171,97152,98090,382788,450698,067After 22 Years342,192$325,182
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203840,13513,2501,127,18632,7208,8469,8092,01153,38661,874804,219742,345After 23 Years384,842$361,448
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203940,93812,8611,219,80332,7209,02310,0052,05153,79931,776820,303788,527After 24 Years431,277$400,912
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204041,757-20,2561,318,50109,20410,2052,09221,5010836,709836,709After 25 Years481,792$443,828
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204142,592-20,6611,389,83109,38810,4092,13421,9310853,443853,443After 26 Years536,388$490,269
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204243,444-21,0741,465,73509,57610,6172,17622,3690870,512870,512After 27 Years595,223$540,472
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204344,313-21,4961,546,52409,76710,8302,22022,8170887,922887,922After 28 Years658,602$594,709
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204445,199-21,9261,632,53309,96211,0462,26423,2730905,681905,681After 29 Years726,852$653,274
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204546,103-22,3641,724,117010,16211,2672,30923,7390923,794923,794After 30 Years800,323$716,481
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Original created by Potato for http://www.holypotato.net
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Extensively modified and improved by Matthew Gordon
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Assumptions and Summary
Monthly Mortgage Calculation