Why does owning cost so much more than the mortgage payment?

Because the mortgage is roughly two-thirds of it. Property tax, insurance, service charges and maintenance are all costs a renter does not carry, and together they routinely add 500-800 a month on a mid-priced house. Comparing rent against the mortgage payment alone is the single most common error in this decision.

Is 1% a year enough for maintenance?

It is the standard planning figure and roughly right on a house in ordinary condition. It is lumpy — nothing for years, then a roof or a boiler — so it works as a provision rather than a bill. On an older property, or one you know needs work, budget more.

Does this mean renting is better?

No. This compares monthly cash only. It ignores the capital you repay each month, which is saving rather than spending; any change in house prices; the return you might earn on the deposit if invested instead; and rent inflation over the same period. It answers what each costs now, not which is the better decision.

What about the cost of buying itself?

Not included, and it is substantial. Stamp duty or transfer tax, legal fees, survey and moving can be several percent of the price — payable on day one and not recoverable if you move again soon. That is why buying rarely makes sense over a short horizon even when the monthly comparison favours it.

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Rent vs Buy Calculator

Compare the true monthly cost of renting against owning, including the ownership costs people leave out.

Computed in your browser — nothing you enter is uploaded. Figures are presented for United States against IRC 2024, and every formula is cited under regulatory standards below.

Last verified 2026-08-26 · v1.0.0

Market

Imperial · sales tax

Monthly rent

Purchase price

Deposit (%)

Mortgage rate (%)

Term (years)

Annual tax, insurance and service charges

Maintenance (% of value per year)

Monthly cost difference

864.16 per month more to own

Check your inputs

Arithmetic on the figures you enter. Not a lending decision, not an offer, and not regulated financial advice — speak to a qualified adviser before acting on it.

Mortgage payment: 1739.16
Tax, insurance and charges: 333.33
Maintenance provision: 291.67
Total cost of owning: 2364.16
Rent: 1500
Deposit required up front: 52500

Running these inputs gives 864 per month more to own as the monthly cost difference. Note that monthly rent and purchase price sit at the edge of the range this calculator was checked against, so treat the output as indicative rather than settled. Expect some drift against the real job; the calculation is solid but conditions on site are not. Currently reading for United States under IRC 2024 — pick a different market above and the figures re-cast accordingly.

Add the equipment this sizes

This result is a specification — 864.155 per month more to own — not a quantity. Put the thing it sizes into your project: how many, what you call it, and your supplier’s price.

QtyItemPrice each ($)

Preliminary estimate, not certified engineering. This tool produces an indicative quantity calculation for planning purposes only — it is not a certified structural analysis, a guaranteed material takeoff, or a substitute for building department approval. Always verify measurements on-site and have a licensed contractor or structural engineer review any load-bearing, code-sensitive, or safety-critical work before purchasing materials or starting construction. Spotted an arithmetic or standards error? Report it to contact@craftquantities.com with your inputs — confirmed fixes become pinned regression tests.

[Schema Verified] Computed in alignment with American Concrete Institute (ACI 318-19) formulas and International Residential Code (IRC 2024) spatial boundaries.

Regulatory standards & verification citations

Maintenance is commonly budgeted at 1% of property value per year — a widely used planning figure, not a measured average
All rates, taxes and charges are user inputs; none are assumed from any market

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Frequently asked questions

Why does owning cost so much more than the mortgage payment?: Because the mortgage is roughly two-thirds of it. Property tax, insurance, service charges and maintenance are all costs a renter does not carry, and together they routinely add 500-800 a month on a mid-priced house. Comparing rent against the mortgage payment alone is the single most common error in this decision.
Is 1% a year enough for maintenance?: It is the standard planning figure and roughly right on a house in ordinary condition. It is lumpy — nothing for years, then a roof or a boiler — so it works as a provision rather than a bill. On an older property, or one you know needs work, budget more.
Does this mean renting is better?: No. This compares monthly cash only. It ignores the capital you repay each month, which is saving rather than spending; any change in house prices; the return you might earn on the deposit if invested instead; and rent inflation over the same period. It answers what each costs now, not which is the better decision.
What about the cost of buying itself?: Not included, and it is substantial. Stamp duty or transfer tax, legal fees, survey and moving can be several percent of the price — payable on day one and not recoverable if you move again soon. That is why buying rarely makes sense over a short horizon even when the monthly comparison favours it.