๐Ÿ‡จ๐Ÿ‡ฆ Canada
๐Ÿ‡บ๐Ÿ‡ธ United States๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom๐Ÿ‡ฉ๐Ÿ‡ช Deutschland๐Ÿ‡ท๐Ÿ‡บ ะ ะพััะธั๐Ÿ‡ฎ๐Ÿ‡ณ India๐Ÿ‡ฆ๐Ÿ‡บ Australia๐Ÿ‡จ๐Ÿ‡ฆ Canada๐Ÿ‡ณ๐Ÿ‡ฟ New Zealand
Homeโ€บCanadaโ€บRent vs Buy Calculator

Rent vs Buy Calculator Canada 2025

Compare the true cost of renting vs buying, including CMHC insurance, land transfer tax, and opportunity cost of your down payment.

Canadian mortgages use semi-annual compounding. This calculator includes CMHC insurance, land transfer tax by province, and invests the renter's savings at your chosen return rate.
$
Home purchase price
$
Comparable monthly rent
%
CMHC insurance required if < 20%
%
Annual rate, semi-annual compounding
Determines land transfer tax
years
How long you plan to stay
years
Max 25 yrs if insured (< 20% down)
%/yr
Annual home value increase
%/yr
Return on invested savings (renter)
%/yr
Annual rent increase rate
%/yr
Annual property tax as % of home value
$
Monthly home insurance
%/yr
Annual maintenance as % of home value
$
Monthly strata or condo fees (if applicable)
โ€”

2025. Semi-annual compounding. CMHC + LTT included. All figures are projections, not financial advice.

Try another scenario

Found an issue? Send feedback

How to Use This Calculator

Tab "Rent vs Buy"

Enter the purchase price, comparable monthly rent, down payment %, mortgage rate, and province. The calculator computes net wealth for both scenarios over your chosen time horizon. Buying wealth = home equity (appreciated value minus remaining mortgage). Renting wealth = invested savings (down payment + monthly cost difference compounded at your chosen investment return). It shows which option wins and the break-even year.

Tab "Cash Flow"

See the monthly outflow for buying (mortgage + property tax + insurance + maintenance + strata) versus renting (rent + renter's insurance). The year-by-year table shows cumulative costs, equity built, and the renter's investment balance growing over time. This helps you understand the ongoing cash flow impact of each choice.

Tab "Sensitivity"

Choose a variable to test โ€” property appreciation, rent growth, mortgage rate, or investment return โ€” and see how 3 scenarios (pessimistic, base, optimistic) change the outcome. This reveals which assumptions matter most for your decision.

The Formula

Canadian mortgage โ€” semi-annual compounding:
Effective monthly rate = (1 + annual rate / 2)^(1/6) - 1
Monthly payment = P ร— r ร— (1+r)^n / ((1+r)^n - 1)

CMHC mortgage insurance (if down payment < 20%):
5-9.99% down โ†’ 4.0% premium | 10-14.99% โ†’ 3.1% | 15-19.99% โ†’ 2.8%
Premium is added to the mortgage principal (max purchase price $1.5M)

Net wealth comparison:
Buy net wealth = Home value ร— (1 + appreciation)^n - Mortgage balance
Rent net wealth = Invested savings (down payment + LTT + monthly surplus) compounded at investment return

Break-even: The year when buy net wealth first exceeds rent net wealth.
Land transfer tax: Province-specific marginal rates (ON, BC, QC) or flat approximation (AB, others).

The renter invests the entire down payment and closing costs upfront, plus any monthly savings versus the buyer's total outflow. Property tax and maintenance scale with home value over time.

Example

Toronto Condo โ€” $800K vs $2,500/mo Rent

A first-time buyer considering an $800,000 condo in Toronto with 20% down, versus continuing to rent at $2,500/month.

Purchase price$800,000
Down payment (20%)$160,000
Mortgage (5.5%, 25 yr, semi-annual)$3,846/mo
Property tax + insurance + maintenance~$1,117/mo
Strata/condo fees$450/mo
Total buy outflow~$5,413/mo
Rent + renter's insurance$2,530/mo
Ontario land transfer tax~$12,475

The renter saves roughly $2,883/month and invests the $160,000 down payment plus $12,475 LTT upfront. At 6% investment return and 3% appreciation, buying typically breaks even around year 8-12 depending on rent growth. Over 15+ years, buying usually wins as equity accumulates and rent keeps rising.

Frequently Asked Questions

In most Canadian cities, you need to stay at least 5-7 years for buying to break even versus renting and investing the difference. The exact break-even point depends on your purchase price, down payment, mortgage rate, property appreciation, and investment returns. High upfront costs (CMHC insurance, land transfer tax, legal fees) make buying expensive in the short term. Use the calculator to find your specific break-even year.
Putting 20% down avoids CMHC mortgage insurance (2.8-4.0% of the mortgage), which saves thousands. However, the larger down payment means more money tied up in the home instead of invested. If your investment returns exceed your mortgage rate, a smaller down payment might actually produce better total wealth. The calculator models both scenarios โ€” try changing the down payment to see the impact.
The calculator includes: mortgage payments (with Canadian semi-annual compounding), CMHC insurance (if applicable), land transfer tax by province, property tax, home insurance, maintenance, and strata/condo fees. It does not include legal fees, home inspection, or moving costs, which are typically $3,000-$5,000 combined. Selling costs (5% realtor commission) are also excluded โ€” if included, they would slightly favour renting.
The renter invests three things: (1) the entire down payment amount upfront, (2) the land transfer tax savings upfront, and (3) any monthly cost difference between buying and renting, invested each month. All investments compound at your chosen annual return rate. This represents the opportunity cost of tying capital up in a home. A 6% return is a reasonable long-term stock market assumption.
Ontario caps annual rent increases for most existing tenancies (2.5% guideline for 2025), but this doesn't apply to units first occupied after November 2018 or when you move to a new unit. British Columbia has a similar guideline. The calculator uses a fixed annual rent increase rate โ€” set it lower (2%) for rent-controlled units or higher (3-5%) if you expect to move periodically. Rent control generally favours renting by slowing rent growth.

Related Calculators

๐Ÿก Mortgage Calculator
Canadian mortgage with semi-annual compounding and payment schedules.
๐Ÿ’ฐ Mortgage Affordability
How much home can you afford based on income and GDS/TDS ratios.
๐Ÿ›ก๏ธ CMHC Insurance
Calculate CMHC mortgage insurance premiums for down payments under 20%.
๐Ÿ“‹ Land Transfer Tax
Provincial land transfer tax for ON, BC, AB, QC, and all provinces.

Embed This Calculator

Add the sum.money Rent vs Buy Calculator to your website. Free, responsive, always up to date.

<iframe src="https://sum.money/embed/ca/rent-vs-buy-calculator" width="100%" height="600"></iframe>