Rent vs Buy Calculator
Compare the financial cost of renting vs buying a home. See which option saves you money over your planned stay.
Enter Your Values
Using shared profile · 3,500/mo · EUR — edit on Dashboard
Results update automatically as you change values.
What-If Scenarios
Results update instantlyCost Breakdown
Net Cost Over Time (Crossover Analysis)
Click chart to expand
7-Year Net Cost Comparison
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Side-by-Side Comparison
Bars show relative size · ✓ marks the better option- Upfront Cost
- €92,000
- Monthly Cost
- €5,048
- 7-Year Total Outlay
- €516,036
- Equity/Investment at End
- €472,272
- 7-Year Net Cost
- €43,765
- Monthly Savings (winner)
- €759
- Flexibility
- Low (hard to sell)
- Maintenance Burden
- Owner pays
- Upfront Cost
- €0
- Monthly Cost
- €1,800
- 7-Year Total Outlay
- €165,509
- Equity/Investment at End
- €57,959
- 7-Year Net Cost
- €107,550
- Monthly Savings (winner)
- €0
- Flexibility
- High (can move anytime)
- Maintenance Burden
- Landlord pays
| Factor | Recommended Buying | Renting Most Flexible |
|---|---|---|
| Upfront Cost | €92,000 | €0 |
| Monthly Cost | €5,048 | €1,800 |
| 7-Year Total Outlay | €516,036 | €165,509 |
| Equity/Investment at End | €472,272 | €57,959 |
| 7-Year Net Cost | €43,765 | €107,550 |
| Monthly Savings (winner) | €759 | €0 |
| Flexibility | Low (hard to sell) | High (can move anytime) |
| Maintenance Burden | Owner pays | Landlord pays |
Over 7 years, Buying has a lower net cost by €63785. Buying becomes cheaper than renting in year 4. Buying costs €31678 in transaction costs alone. If you sell before the crossover year, renting wins. The key factors: home appreciation (3.0%/yr), rent increases (3.0%/yr), and investment returns (7.0%) on the down payment you keep when renting.
Scenario Analysis
How the outcome shifts if your assumptions turn out better or worse than expected.
High appreciation (5%), low rent increase
At your stated rates
Low appreciation (0.9999999999999999%), high rent increase
Compare Scenarios
Pin up to 3 and see them side by sideSet your inputs, then Pin current to save this scenario. Pin a few variations to compare their scores and outcomes here.
What Moves the Needle Most
How much each factor changes your Buy: Net Cost across its full range. Home Appreciation has the biggest impact.
Focus your attention on Home Appreciation — getting it right matters most. Factors lower down move the result less, so rough estimates there are fine.
Confidence & Assumptions
The result swings widely between best and worst cases — it depends heavily on assumptions that are hard to predict.
Buy Net Cost: €106,860 (worst) → €43,765 (expected) → -€27,126 (best)
These are the estimates the result depends on. Adjust them (and the Advanced inputs) to match your real situation — the closer they are to reality, the more reliable your decision.
These estimates are for informational purposes only and do not constitute financial advice. Actual results may vary based on factors not captured in this calculator.
How This Calculator Works
What this calculator does
This calculator compares the net financial cost of buying a home (mortgage, taxes, maintenance, minus appreciation) versus renting and investing the down payment.
How the calculation works
For buying: we calculate total mortgage payments, property tax, and maintenance, then subtract the home value at sale (minus remaining loan). For renting: we calculate total rent paid (increasing annually) minus the investment growth of the down payment you kept. The lower net cost wins.
Formula
Mortgage EMI = P × r × (1+r)^n / ((1+r)^n - 1) Buy Net = Down + EMI×n + Tax×t + Maint×t - (Home Value - Loan Balance) Rent Net = Total Rent - Down Payment × (1+i/12)^(12t)
Example
€400,000 home, €80,000 down, 4.5% mortgage, 7 years, €1,800 rent: Buy net cost ≈ €101,000. Rent net cost ≈ €94,000. Renting is cheaper if you stay under 7 years.
How to Use This Calculator
- 1Enter your numbers
Fill in the inputs for Rent vs Buy Calculator. Defaults are realistic starting points — replace them with your actual figures.
- 2Understand the calculation
For buying: we calculate total mortgage payments, property tax, and maintenance, then subtract the home value at sale (minus remaining loan). For renting: we calculate total rent paid (increasing annually) minus the investment growth of the down payment you kept. The lower net cost wins.
- 3Review results and scenarios
Check metrics, cost breakdown, comparison tables, and best / expected / worst scenarios. Use sliders to stress-test assumptions.
- 4Decide with the verdict
Read the decision engine recommendation and FAQ. Example: €400,000 home, €80,000 down, 4.5% mortgage, 7 years, €1,800 rent: Buy net cost ≈ €101,000. Rent net cost ≈ €94,000. Renting is cheaper if you stay under 7 years.
Factors to Consider
- Buying makes more sense the longer you stay (typically 5-7+ years)
- Closing costs (2-5% of price) are paid upfront and lost if you sell early
- Renting gives flexibility to relocate for work
- Home appreciation is not guaranteed — markets can decline
- Property taxes and maintenance are significant ongoing costs
- Renting allows investing the down payment in the stock market
Common Mistakes
- Only comparing monthly mortgage vs rent (ignoring taxes, maintenance, closing costs)
- Assuming home prices always go up
- Forclosing costs (2-5%) when selling
- Not considering the investment returns on the down payment
- Underestimating maintenance costs (1-2% of home value per year)
Frequently Asked Questions
How many years should I plan to stay for buying to make sense?+
Typically 5-7 years to offset closing costs and transaction fees. The longer you stay, the more buying makes financial sense.
Is rent throwing money away?+
No. Rent pays for housing service, flexibility, and zero maintenance risk. The money you save on a down payment can be invested, potentially earning more than home appreciation.
What are closing costs?+
Closing costs include appraisal, title insurance, legal fees, and taxes. They typically run 2-5% of the home price and are paid upfront.
This calculator provides estimates for informational purposes only and does not constitute financial, investment, tax, or legal advice. Always consult a qualified professional before making important financial decisions.
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