GenzeeRent vs. Buy Calculator
Compare the true long-term cost of renting versus buying a home, accounting for mortgage payments, maintenance, appreciation and rising rent.
Buying looks cheaper over 10 years
PKR 5,275,603 difference
Why this comparison is more complex than "rent vs. mortgage payment"
Comparing monthly rent to a monthly mortgage payment alone misses most of what actually determines which option is cheaper: buying involves a large upfront down payment, ongoing maintenance costs, and — critically — building equity in an asset that (usually) appreciates over time. Renting avoids all of that upfront commitment but builds no equity and is exposed to rent increases over the same period.
How this calculator accounts for both sides
For buying, it totals the down payment, mortgage payments made during your time horizon, and maintenance costs, then subtracts your net equity at the end — the home's appreciated value minus whatever mortgage balance is still outstanding if the horizon is shorter than the full loan term. For renting, it totals rent paid over the same horizon, accounting for annual rent increases rather than assuming rent stays flat.
Why your time horizon changes the answer
Buying typically involves large upfront costs (down payment, closing-type costs) that take years to "pay off" through avoided rent and building equity — a short time horizon often favors renting, while a longer horizon gives home appreciation and equity-building more time to work in the buyer's favor. Running the comparison at a few different horizons — not just one assumed number of years — gives a much clearer picture than a single answer.
What this doesn't capture
This models the core financial trade-off but leaves out some real factors: the flexibility renting offers to relocate easily, the transaction costs of eventually selling a home, and non-financial preferences around stability or customization that reasonably factor into a real housing decision alongside the pure cost comparison.
Frequently asked questions
What if I don't know the exact home appreciation rate?
Use a conservative, long-run average for your area rather than recent short-term trends, which can be unusually high or low. Running the calculator at a couple of different appreciation assumptions shows how sensitive the answer is to this uncertainty.
Does this include closing costs or selling costs?
No — this focuses on the core ongoing cost comparison (payments, maintenance, appreciation, rent). One-time transaction costs on either end of a purchase or sale would add to the buying side's real total cost.
Why does a longer time horizon usually favor buying?
Because the large upfront costs of buying are fixed regardless of how long you stay, while the ongoing benefits (avoided rent increases, accumulated equity, appreciation) keep compounding the longer you hold the property — spreading a fixed upfront cost over more years usually improves buying's relative economics.