Rent vs Buy Calculator
Works out the monthly mortgage payment on a home, compares it with your rent and shows how many years it takes for buying to beat renting on monthly cost.
Enter your numbers
Example: 28000
Example: 3000000
Example: 600000
Example: 9
Example: 20
Recent
Formula
How the calculation works
Enter the rent you pay now and the price of the home you would buy instead.
Enter your down payment, the mortgage interest rate and the term in years, which together set the monthly payment.
The tool calculates the monthly mortgage, compares it with your rent for the monthly gap and divides the down payment by the yearly gap for the breakeven.
Common mistakes
- Comparing rent with the mortgage payment alone, when buying also brings tax, insurance and maintenance that renters do not pay.
- Assuming a short stay, since buying rarely wins if you sell within a few years and have to absorb the transaction costs.
When to use it
- Use it when you are deciding whether to keep renting or take on a mortgage for a similar home in the same area.
- Use it to test how a bigger down payment shortens the breakeven, since a larger deposit cuts both the loan and the monthly payment.
Worked example
On a home of 3000000 Taka with a 600000 Taka down payment at 9 percent over 20 years, the monthly mortgage is about 21593 Taka, and against a rent of 28000 Taka the gap is 6407 Taka a month, giving a breakeven of about 7.8 years.
Common questions
Why is the breakeven measured in years?
The down payment is a large upfront cost that renting avoids, so buying only pays off once the monthly saving has recovered that cost, and the breakeven is the time it takes to do so.
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