# Rent vs Own Cash Flow Calculator

> Compare the cash you pay out each month and year to rent versus own: mortgage, tax, insurance, upkeep and fees against rent, with the year the lines cross.

Category: Real estate · Applies to: Worldwide · Last updated: 2026-10-29
Interactive calculator: https://calculators.geekmidst.com/calculators/rent-vs-own-cashflow-calculator

This is a budget view, not a wealth comparison: how much cash leaves your account each year if you rent compared with if you buy, including the upfront deposit and costs.

Also called: Rent vs mortgage payment calculator, Monthly cost of owning vs renting calculator.

## Inputs
- Monthly rent now (default 2000)
- Rent increase (per year) (unit %; default 3; optional)
- Home price (default 400000)
- Down payment (unit %; default 20)
- Closing costs (default 10000; optional)
- Mortgage rate (per year) (unit %; default 6.5)
- Mortgage term (unit years; default 30)
- Property tax (per year) (default 4000; optional)
- Home insurance (per year) (default 1500; optional)
- Maintenance (unit % of price per year; default 1; optional)
- HOA or service charge (per month) (default 0; optional)
- Increase in owner costs (per year) (unit %; default 3; optional)
- Years to compare (unit years; default 10)
- Currency

## Results
- Extra cash paid out to own (negative = owning cost less)
- Owning: cash out per month, year 1
- Renting: cash out per month, year 1
- Monthly gap, year 1
- Mortgage payment
- Upfront cash to buy
- Total cash out owning (incl. upfront)
- Total rent paid
- Of which loan principal repaid
- First year rent costs more than owning

## Formula

```
Rent in year y = Rent × 12 × (1 + g)^(y−1);  Owning in year y = 12 × Mortgage payment + (Tax + Insurance + Maintenance% × Price + 12 × HOA) × (1 + c)^(y−1);  Difference = Upfront cash + Σ Owning − Σ Rent
```

Where:
- g: yearly rent increase
- c: yearly increase in owner running costs
- Upfront cash: down payment plus closing costs

## Worked example
1. Loan $320,000 at 6.5% over 30 years = $2,022.62 a month.
2. Year-1 owner costs = 2,022.62 + (4,000 + 1,500 + 4,000) ÷ 12 = $2,814.28 a month, against $2,000 rent.
3. Ten years of rent rising 3% = 24,000 × (1.03¹⁰ − 1) ÷ 0.03 = $275,133.10.
4. Owning = $90,000 upfront + $351,620.97 of payments and costs = $441,620.97, so owning takes $166,487.87 more cash.

**Result:** Over 10 years owning takes about $166,488 more cash than renting, though $48,716 of that repays the loan and stays with you as equity.

## What the result means

Cash out is what matters for your budget. It is not the whole financial picture: part of the mortgage payment builds equity and the home may rise in value. For a net-worth comparison, use a rent vs buy calculator that includes appreciation and investment returns.

## Assumptions and limits
- The mortgage is fixed-rate with level monthly payments.
- Rent and owner costs grow at the steady rates you enter.
- Tax effects (deductions, reliefs) are ignored.
- Ignores home price growth, selling costs and what the renter could earn by investing the deposit; those belong in a wealth comparison.

## Questions

### Why can owning cost more even when the mortgage is less than rent?

Tax, insurance, maintenance and service charges come on top of the mortgage, and the deposit and closing costs are paid up front.

### Does the principal I repay count as a cost?

It is cash out of your budget, so it is counted here, but it becomes equity. The page shows it separately so you can see how much.

## Related calculators
- [Mortgage Calculator](https://calculators.geekmidst.com/calculators/mortgage-calculator)
- [Closing Cost Estimate Calculator](https://calculators.geekmidst.com/calculators/closing-cost-estimate-calculator)
- [Loan-to-Value Calculator](https://calculators.geekmidst.com/calculators/loan-to-value-calculator)
- [Inflation Calculator](https://calculators.geekmidst.com/calculators/inflation-calculator)
- [Rent vs Buy Calculator](https://calculators.geekmidst.com/calculators/rent-vs-buy-calculator)

_This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ._

Source: GM¹X CalcVerse — https://calculators.geekmidst.com/calculators/rent-vs-own-cashflow-calculator