Rent vs buy calculator
Ontario Rent vs Buy Calculator
Compare renting and buying across the full financial picture—not only rent versus a mortgage payment. The estimate follows monthly costs, Ontario closing costs, mortgage paydown, home equity and what the renter's unused cash grows into, invested or not.
Designed for buyers planning in Brampton, Mississauga, Toronto and across the GTA, with a comparison period that adapts to 25 or 30 years based on the selected amortization.
Use this as a planning estimate. The better choice can also depend on lifestyle, flexibility, property condition and financing approval.
Rent vs buy comparison
Test the decision with your own numbers.
Adjust every assumption and move the timeline. The basic results, chart, print view and shareable link remain available without submitting a form.
Your numbers are calculated inside your browser. This page does not save or send them.
How the comparison works
This is not just rent versus a mortgage payment.
A fair comparison follows both households over the same period. The buyer builds home equity but pays closing costs, interest, property tax, maintenance and selling costs. The renter can invest the cash that was not used to buy.
The buyer side
Tracks home-value growth, mortgage principal repaid, remaining mortgage balance, ownership expenses and estimated selling costs.
The renter side
Starts with the unused down payment and closing-cost cash, then adds every monthly cost advantage. By default this stays as flat savings; turn on the invest option to have it grow at the selected rate instead.
The holding period
Matters because buying normally has higher upfront and exit costs. Year three can look very different from year ten.
Use the result carefully
Stress-test the decision, not just the payment.
Try a conservative home-growth rate, a higher mortgage rate and a shorter holding period. A decision that only works under optimistic assumptions deserves a closer review.
Frequently asked questions
Questions about renting versus buying.
Does the calculator include Ontario land transfer tax?
Yes. It estimates Ontario land transfer tax and applies the provincial first-time buyer rebate when selected. Toronto purchases also include an estimate of Toronto's municipal land transfer tax and rebate.
Does it include mortgage default insurance?
Yes. When the down payment is below 20%, the calculator estimates the mortgage insurance premium using the selected price, down payment and amortization. It also estimates Ontario retail sales tax on that premium as an upfront closing cost.
How does the renter reinvest savings?
The renter begins with the cash that was not used for the down payment and purchase closing costs. Each month, when renting costs less than owning, that difference is added to the renter's pile. By default that pile stays flat, no growth. Turn on the invest option to have it compound at the same rate as home-value growth or your own custom rate.
Why can renting sometimes finish ahead?
Renting can finish ahead when ownership costs are high, the holding period is short, or home-price growth is modest. Turning on the invest option for the renter's savings can widen this further.
Why can buying finish ahead even when it costs more monthly?
Part of each mortgage payment reduces the loan balance. Over time, mortgage paydown and home-value growth may create more equity than the renter has saved, especially if the renter's savings are not invested.
Does the selling-cost estimate include HST?
Yes. The calculator treats the entered percentage as real estate commission before tax, adds 13% Ontario HST to that commission, and then adds the separate legal, discharge and other selling-cost amount.
What happens when the property is not a principal residence?
Turn off the principal-residence option to show a simplified capital-gain tax estimate. The result uses the projected gain, entered adjusted-cost-base additions, inclusion rate and marginal tax rate. Actual treatment can differ, especially for rental properties, corporations, changes in use, CCA claims or properties sold as business inventory.
Can I include basement rental income?
Yes, but enter a conservative net amount. Lenders may treat rental income differently, and legal status, vacancy, maintenance, insurance and tax consequences require separate review.
Sources (current as of July 2026): minimum down payment, CMHC premium schedule, Ontario insurance-premium RST, Ontario land transfer tax, Toronto MLTT rates, CRA principal-residence guidance, and CRA guidance on HST for agent commissions.
Buyer resources
Move from a rough comparison to a full buying plan.
Use these related Team Shah tools and guides to test the payment, closing cash and purchase process separately.
Mortgage Calculator
Compare down payments, insurance premiums and mortgage-payment scenarios.
Use calculator -> Cash to closeClosing Costs Calculator
Estimate legal fees, taxes, adjustments and other buyer closing costs.
Use calculator -> Ontario and TorontoLand Transfer Tax Calculator
Review Ontario tax, Toronto MLTT and first-time-buyer rebates.
Use calculator -> First-time buyersFirst-Time Buyer Guide
Understand the full GTA buying process, budget and offer preparation.
Read the guide -> Buyer representationGTA Buyer Agent
Learn how Team Shah helps buyers compare areas, properties and offer risks.
See buyer services -> QuestionsBuyer FAQ
Read concise answers about offers, financing and closing.
Read buyer questions ->Optional estimate review
Ask Gaurang to review your rent versus buy comparison.
Use the button beside the print option to copy the current scenario into this form, or enter the details yourself. Basic calculator results and printing do not require contact information.
What happens next: Gaurang can help you understand the planning estimate and connect it to your buyer budget. Exact mortgage, investment, tax and closing figures remain subject to the appropriate professional review.
Note: This page provides general real estate information and a planning estimate only. It is not legal, tax, mortgage or financial advice. Gaurang Shah is a Real Estate Broker with Royal LePage Flower City Realty. Call or text 647-892-2411 or email mail@myshahteam.com.
