Rent vs Buy Calculator
Compare the true cost of renting versus buying over time
Renting wins! after 15 years
Net worth difference: ₵233,316
Buying
Renting
Total Buy Cost
₵726.0K
Including mortgage, tax, maintenance
Total Rent Cost
₵651.7K
Over 15 years
Buy Net Worth
₵490.8K
Home equity after appreciation
Rent Net Worth
₵724.2K
Investment portfolio value
Monthly Mortgage Payment
₵3,160
Home Value (Year 15)
₵623.7K
Remaining Loan Balance
₵132.8K
Net Worth Over Time
How It Works
- Opportunity cost matters: The down payment you use to buy a house could be invested instead. This calculator compares both paths fairly by tracking the renter's investment portfolio.
- Mortgage rates matter more in Africa: With rates often above 15%, a huge portion of your payment goes to interest. Even a 2% rate reduction can save you hundreds of thousands over the loan term.
- The 5-year rule: Buying usually only makes sense if you plan to stay at least 5 years. Transaction costs (legal fees, agent commissions) eat into your equity if you sell too soon.
- Hidden costs of ownership: This calculator includes 1% annual maintenance and 0.5% property tax. In reality, repairs, insurance, and renovations can push costs higher.
- Rent increases erode savings: If your rent climbs 8-10% per year (common in many African cities), renting becomes very expensive over time, often tipping the scales toward buying.
About This Tool
Not sure whether renting or buying makes more financial sense? Enter your rent, potential purchase price, and a few other details to see a side-by-side comparison over time.
How to Use
- 1Enter your current monthly rent and expected annual rent increase.
- 2Enter the home purchase price, down payment, interest rate, and other costs.
- 3Compare the total cost of renting vs. buying over your chosen timeframe.
Why Use This?
The 'rent is throwing money away' advice is not always correct. Sometimes renting and investing the difference beats buying, especially with high interest rates or when you might move soon. This tool does the actual math so you can decide based on numbers, not assumptions.