Rent vs Buy Calculator Philippines

How to use this calculator

Enter the property price, down payment, loan rate and term for the home you are considering.
Add closing costs and yearly maintenance as a percent of the price.
Enter the rent you pay now for a similar home and how fast you expect it to rise.
Set how many years you will stay, the home price growth and the return you could earn by investing the upfront cash.
Read the headline to see whether renting or buying costs less, then change the assumptions to test it.

Renting or buying: the money side of the decision

Many Filipinos feel pressure to buy a home because rent feels like money that disappears. A fair comparison looks at everything that leaves your pocket and everything you keep, including the equity in the home and the return your down payment could earn elsewhere.

This calculator tallies both paths over the number of years you plan to stay. It is a planning aid, so run it with cautious and optimistic assumptions and look at the range of results.

Start with the housing loan calculator for the monthly payment, and read our rent savings tips if you decide to keep renting.

How the rent vs buy comparison works

Cost of buying is the upfront cash, the loan payments, maintenance and the gain you could have earned by investing the upfront cash, minus the equity you own at the end.
Equity is the home value at the end minus the loan balance still owed.
Cost of renting is the total rent paid, with the yearly increase you enter.
The headline shows which option costs less and by how much. Results depend heavily on the assumptions, so test several.

Tips to save more

Test a short stay and a long stay, since the answer often flips.
Keep three to six months of expenses outside your down payment.
If you rent, invest the difference between rent and a mortgage payment.
Check the neighborhood price trend, not just national averages.

Frequently asked questions

Is it better to rent or buy in the Philippines?

It depends on how long you stay, your rate, local price trends and your alternative use of cash. Buying tends to win with a long stay and steady prices, while renting wins when you may move or prices are high compared with rent.

Why include the return on the down payment?

Cash used for a down payment cannot earn a return elsewhere. Counting that opportunity cost gives a fairer comparison with renting.

Does this include the benefit of living in a home I own?

The comparison covers money only. Stability, the freedom to renovate and the end of rent increases are real benefits that a calculator cannot price.

What if home prices fall?

Lower the home price growth, or enter a negative value to test it. Equity shrinks and buying looks worse in that case.

What costs are easy to forget?

Closing costs, maintenance, association dues, insurance and property taxes. Renters should also remember deposits, advance rent and moving costs.

Helpful guides and deals

More free tools

Housing Loan Calculator (Pag-IBIG and Bank) Monthly amortization and the income you need Savings Goal Calculator How much to save each month, plus the 52-week challenge 50/30/20 Payday Budget Planner Split your pay into needs, wants and savings

This calculator gives estimates for planning only. It is not financial, tax or legal advice. Confirm exact figures with your employer, bank, lender or the relevant government agency.