Rent to Buy Ratio Calculator
What's the price-to-rent ratio for this home?
Divide the home price by the annual rent for the same home, and you get a fast read on whether your market favors renting or buying — before you dig into mortgage rates or how long you'll stay.
Your price-to-rent ratio
Gross rental yield
How this city compares
Price-to-rent ratio for every city we track in this country, cheapest-to-buy first. Useful for comparing markets, or as evidence next time someone tells you "everyone here just buys."
| City | Ratio | Yield | Signal |
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The numbers above are our own illustrative estimates, not live data — edit any field to use your real numbers. For actual current price-to-rent ratios by city, see Numbeo's live rankings (crowdsourced from user-submitted data, not an official government source, but continuously updated).
Now that you have your number, what next?
Get the full picture
This ratio ignores your mortgage rate and how long you'll stay. Run the rent vs. buy calculator for your actual breakeven year.
Considering a second property?
If you're weighing an investment property instead of a place to live, try the buy to let investment calculator.
Verify the numbers yourself
Our defaults are illustrative, not live data. Check official sources for your country for current rates.
What the rent to buy ratio actually means
The rent to buy ratio — also called the price-to-rent ratio — is home price divided by annual rent for an equivalent home. It's a rough gauge, not a verdict: a ratio under 15 usually favors buying, over 20 usually favors renting, and anything in between depends more on your mortgage rate and how long you'll stay than on the ratio itself. It also varies enormously by city — a national average tells you very little, so it's worth calculating the price-to-rent ratio for your own neighborhood rather than relying on a country-wide figure.
Frequently asked questions
- What is a good rent to buy ratio?
- A price-to-rent ratio below 15 is generally considered good for buying — rent is expensive relative to the home price. A ratio above 20 generally favors renting. Between 15 and 20, the decision depends more on your mortgage rate and how long you plan to stay than on the ratio itself.
- How do I calculate the rent to buy ratio for a house?
- Divide the home's purchase price by the annual rent for an equivalent home (monthly rent × 12). For example, a $400,000 home renting for $1,800/month has an annual rent of $21,600, giving a ratio of about 18.5.
- Is price-to-rent ratio the same as rent to buy ratio?
- Yes — "price-to-rent ratio" and "rent to buy ratio" refer to the same calculation: home price divided by annual rent. Both terms are used interchangeably in real estate.
- Does the rent to buy ratio account for mortgage rates?
- No. The ratio is a quick sanity check based only on price and rent — it ignores your mortgage rate, down payment, closing costs, and how long you'll stay. For those, use a full rent vs. buy calculator that computes a breakeven year.