Everyday tool
Mortgage and Rent vs Buy Calculator
Calculate your mortgage payment with an amortisation table and extra payments, then compare the net worth from buying a home against renting and investing.
Free, no sign-up. Runs in your browser; nothing is uploaded.
Home loan
Goes straight to principal.
Ownership and rent (for the comparison)
What the renter earns on the saved down payment.
Summary
Amortisation schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $3,577 | $20,695 | $316,423 |
| 2 | $3,816 | $20,455 | $312,607 |
| 3 | $4,072 | $20,200 | $308,535 |
| 4 | $4,345 | $19,927 | $304,191 |
| 5 | $4,636 | $19,636 | $299,555 |
| 6 | $4,946 | $19,325 | $294,609 |
| 7 | $5,277 | $18,994 | $289,332 |
| 8 | $5,631 | $18,641 | $283,701 |
| 9 | $6,008 | $18,264 | $277,694 |
| 10 | $6,410 | $17,861 | $271,284 |
| 11 | $6,839 | $17,432 | $264,444 |
| 12 | $7,297 | $16,974 | $257,147 |
| 13 | $7,786 | $16,485 | $249,361 |
| 14 | $8,308 | $15,964 | $241,053 |
| 15 | $8,864 | $15,407 | $232,189 |
| 16 | $9,458 | $14,814 | $222,732 |
| 17 | $10,091 | $14,180 | $212,641 |
| 18 | $10,767 | $13,505 | $201,874 |
| 19 | $11,488 | $12,784 | $190,386 |
| 20 | $12,257 | $12,014 | $178,129 |
| 21 | $13,078 | $11,193 | $165,051 |
| 22 | $13,954 | $10,317 | $151,097 |
| 23 | $14,888 | $9,383 | $136,208 |
| 24 | $15,886 | $8,386 | $120,323 |
| 25 | $16,949 | $7,322 | $103,373 |
| 26 | $18,085 | $6,187 | $85,289 |
| 27 | $19,296 | $4,976 | $65,993 |
| 28 | $20,588 | $3,683 | $45,405 |
| 29 | $21,967 | $2,305 | $23,438 |
| 30 | $23,438 | $833 | $0 |
How to use the mortgage and rent vs buy calculator
Plan the loan, then test the decision
This tool has two jobs. First it works out the payment and full schedule for a home loan. Then it checks whether buying beats renting for your situation.
The mortgage
- Enter the home price, down payment, interest rate and term.
- Read the monthly payment, total interest and payoff time.
- Add an extra monthly payment to see interest saved and years removed.
- Browse the schedule by year or by month, and download it as a CSV.
Rent vs buy
Open the comparison and describe the costs of owning: property tax, maintenance, insurance, buying costs and selling costs. Then add the rent for a similar home, how fast rent rises, how much the home appreciates and the return a renter could earn by investing the down payment.
Both people spend the same each month. Whoever has the cheaper housing bill invests the difference. At the end of your chosen horizon, the tool compares:
- Buy: home value minus selling costs, minus the loan balance, plus any money invested.
- Rent: the invested portfolio.
The chart shows both lines over time and the break-even year when buying pulls ahead, if it does.
Tips
- Stress-test: lower appreciation and raise the investment return to see when renting wins.
- Count the real costs. Maintenance of one percent of the value per year is a common rule of thumb.
- Stay horizon matters. Selling costs mean short stays rarely favour buying.
Figures are estimates and ignore tax relief, capital gains and variable rates. They are not financial advice.
Frequently asked questions
How is the monthly mortgage payment calculated?
The standard annuity formula: payment = loan x r / (1 - (1 + r)^-n), where r is the monthly rate and n the number of months. Early payments are mostly interest and later ones mostly principal.
How do extra payments help?
Extra money goes directly to principal, so you pay interest on a smaller balance every month. The tool keeps the regular payment fixed and shows the interest saved and the years cut off the loan.
How does the rent vs buy comparison work?
It tracks two people spending the same on housing. The buyer pays the mortgage, tax, maintenance and insurance. The renter pays rent and invests the down payment and any monthly saving. After the chosen years it compares each person's net worth.
Which assumptions matter most?
Home appreciation, the investment return and how long you stay. Buying costs and selling costs make short stays favour renting, while long stays usually favour buying.
Is it better to buy than rent?
There is no single answer. It depends on local prices, rents, rates and your plans. Change the inputs to see how sensitive the result is before you decide.