Decision Tools
Rent vs Buy Calculator Canada — True Cost Comparison
Compare renting vs buying a home in Canada over time. Find your financial break-even year and see which option builds more wealth. Free Canadian rent or buy calculator.
Renting
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Buying
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years
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Assumptions
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Frequently Asked Questions
Is it better to rent or buy a home in Canada?+
Whether renting or buying is better depends on how long you plan to stay, local market conditions, your down payment, and your investment alternatives. Buying generally builds more wealth over longer time horizons due to equity and appreciation, but renting offers flexibility and avoids large upfront costs. Use this calculator to model your specific situation.
How long does it take for buying to beat renting financially?+
The break-even point — where buying becomes financially superior to renting — typically ranges from 3 to 7 years in Canada, depending on home prices, rent levels, mortgage rates, and appreciation. Markets with high price-to-rent ratios (like Toronto and Vancouver) tend to have longer break-even periods.
What return should I assume on my invested down payment?+
A commonly used long-term equity market return assumption is 6–7% annually (before inflation). This represents what your down payment could earn if invested in a diversified index fund rather than used to buy a home. Conservative estimates use 5%; optimistic estimates use 8%.