Rent vs. Buy Calculator

PROPERTY & TIMEFRAME

€
Enter the current purchase price of the property, excluding purchase costs.
€/month
Enter the current monthly rent for a comparable home, excluding utilities.
€
The cash available at the start. The renter invests this amount; the buyer uses it towards the purchase and invests any surplus.
years
Choose the number of years to compare.

FINANCING & TRANSACTION COSTS

% p.a.
Annual mortgage interest rate during the initial fixed-rate period.
% p.a.
Initial repayment rate used to estimate the monthly mortgage payment.
% of price
Include property transfer tax, notary, land registry, agent fees and other one-off purchase costs.
% of value
Estimated selling costs deducted from the property value at the end of the comparison period.
Advanced financing assumptions
years
After this period, the model switches to the assumed follow-on interest rate.
% p.a.
Assumed annual interest rate after the initial fixed-rate period. This is a scenario assumption, not a forecast.

ONGOING COSTS

% of home value
Annual allowance for repairs and maintenance, calculated as a percentage of the estimated property value.
€/month
Monthly owner costs not included in the mortgage, maintenance or property tax.
€/year
Estimated annual property tax. Actual amounts depend on the country and local rules.
€/month
Additional monthly costs specific to renting that are not included in the base rent.

FUTURE ASSUMPTIONS

% p.a.
Assumed average annual change in property value. Negative values are possible.
% p.a.
Assumed average annual increase in base rent.
% p.a.
Assumed annual return on invested savings. Both scenarios invest their monthly cost advantage and earn the same return.
% p.a.
Results are currently shown in nominal amounts. This value is reserved for a future inflation-adjusted view and does not currently affect the calculation.

YOUR COMPARISON

Estimated financial outcome —

Difference in estimated net worth at the end of the comparison period.

Net worth if you buy — Property value after selling costs and remaining mortgage debt, plus the buyer investment portfolio.
Net worth if you rent — Investment portfolio after investing the initial capital and monthly cost advantages.
Monthly cost if you buy — Estimated mortgage payment plus owner costs, property tax and maintenance.
Monthly cost if you rent — Current base rent plus additional renter costs.
Net property equity at the end — Property value after selling costs and remaining mortgage debt.
Estimated break-even year — First year in which buying has at least as much estimated net worth as renting.

NET WORTH OVER TIME

Net worth if you buy Net worth if you rent

YEAR-BY-YEAR BREAKDOWN

Year Net worth if buying Net worth if renting Buying minus renting

This calculator provides an illustrative estimate, not financial, tax or investment advice. Both scenarios start with the same available capital and invest monthly cash-flow savings at the assumed investment return. Results are nominal and depend on assumptions. Taxes, investment fees, detailed refinancing terms and some property-specific costs are not modelled.