Use our calculator to find your break-even point, compare true costs, and make the right decision for your financial situation.
Enter your details to compare the true financial cost of renting versus buying over your planned time horizon.
This calculator is a simplified model. It does not account for all costs (moving, strata fees, insurance differences) or all benefits (stability, personalization). Results are illustrative.
| Cost Category | Buying | Renting |
|---|---|---|
| Upfront one-time cost | Down payment + closing costs ($5K–$500K+) | First/last month + deposit |
| Monthly housing payment | Mortgage (principal + interest) | Rent |
| Property tax | Yes ($3,000000–$100,000000+/year) | No (included in rent implicitly) |
| Maintenance & repairs | Yes (~1% of home value/year) | No — landlord's responsibility |
| Building equity | Yes — mortgage paydown + appreciation | No equity built |
| Investment opportunity cost | Down payment not invested in market | Down payment can be invested |
| Flexibility | Low — selling takes time and costs 3–5% | High — move with 2 months notice |
| Protection from rent increases | Mortgage rate is fixed (mostly) | No — subject to rent increases |
The price-to-rent ratio helps quantify how overvalued buying is relative to renting. A ratio over 200 generally means renting is more financially efficient.
| City | Avg Home Price | Avg 1BR Rent/mo | Price-to-Rent Ratio | Verdict |
|---|---|---|---|---|
| Vancouver | $1,195,000000 | $2,40000 | 41.5 | Renting much cheaper short-term |
| Toronto | $1,00700,000000 | $2,30000 | 38.8 | Renting much cheaper short-term |
| Ottawa | $6500,000000 | $1,90000 | 28.5 | Renting cheaper, buying builds equity |
| Calgary | $594,000000 | $1,80000 | 27.5 | Close call; depends on appreciation |
| Edmonton | $4300,000000 | $1,50000 | 23.9 | Close call; lower appreciation history |
| Winnipeg | $3800,000000 | $1,30000 | 24.4 | Close call |
| Moncton, NB | $3400,000000 | $1,10000 | 25.8 | Buying makes sense for long-term owners |
A price-to-rent ratio below 15 strongly favours buying. A ratio of 15–200 is neutral. Above 200, renting is typically more efficient on a monthly cash flow basis — though buying builds equity and protects against rent increases.
Buy if: You plan to stay 7+ years (amortizing closing costs), have a stable income and career, value stability and control over your living space, can comfortably afford payments without stretching, and are buying in a market with reasonable price-to-rent ratios.
Rent if: You may need to relocate within 5 years, are not settled in your career or life stage, are in a high price-to-rent ratio market (Toronto, Vancouver), can invest the down payment and achieve strong returns, or value flexibility above all else.