Rent vs buy calculator
The year buying overtakes renting — or never, at these numbers. The renter invests the deposit they did not spend, which is the only fair way to compare the two.
Buying pulls ahead
Year 5
Buying costs €104.000 up front and takes 5 years to overtake renting and investing the difference. After 15 years the buyer is €105.304 ahead. Move out earlier than that and buying was the more expensive choice.
Cash needed up front
€104.000
Monthly mortgage
€1.509
Buyer after 15 yrs
+€105.304
A house is one line in a net worth
Track the property and the mortgage against it as two entries and the equity takes care of itself — revalue whenever you like, no bank connection needed.
How the comparison is made fair
The buyer's position is what the property would fetch after selling costs, minus the mortgage still outstanding. Straightforward enough.
The renter's position is the part most calculators get wrong. Here the renter starts with the deposit and buying costs invested, not spent, and adds the difference every month that owning costs more than renting. Compare net positions this way and the answer is honest. Let the buyer build equity while the renter's deposit vanishes and buying wins every time — which is why so many rent-vs-buy tools conclude that it does.
Alongside the visible sliders it assumes rent rises 3% a year, maintenance runs 1%of the property's value annually, selling costs 2%, and the mortgage runs 30 years.
Why buying costs decide the early years
Purchase costs are sunk the day you buy. Transfer tax, notary and legal fees, agent commission, survey — somewhere between 3% and 10% of the price depending on where you are. That is the hole the buyer starts in, and the reason the line on the chart begins well below zero.
It is also why the honest answer to "should I buy" depends mostly on how long you will stay. Buying and moving within a few years is usually the most expensive housing decision available, regardless of what prices do. The break-even year above is the number that actually matters — not the monthly payment comparison.
What this cannot tell you
It leaves out property tax, buildings insurance and service charges beyond the maintenance figure, and any mortgage interest relief where your country offers it. It also assumes you invest the difference every single month, which very few renters actually do — and if you would not, buying's forced saving is a real advantage the maths here does not credit.
It says nothing about security of tenure, whether you can paint the walls, or living somewhere a landlord cannot end your lease. Those decide plenty of housing decisions and none of them fit in a spreadsheet. Use the number as one input, not the verdict.
Common questions
The buyer’s position is the home’s value after selling costs, minus what is still owed. The renter’s position is the deposit and buying costs they did not spend, invested at your chosen return, plus the difference whenever owning costs more per month than renting. Comparing net positions this way is the only fair comparison.
Because otherwise the comparison is rigged. A calculator that lets the buyer build equity while the renter spends the deposit will always favour buying. Whether people actually invest that money is another question — but the honest baseline assumes they do.
The first year the buyer’s net position overtakes the renter’s. Before it, the purchase costs — typically 5 to 10% of the price in fees, tax and legal work — have not yet been recovered. If no year crosses, renting stays ahead for the whole period you modelled.
Property tax, insurance and service charges beyond the maintenance percentage, mortgage interest relief where it exists, and the security and freedom of owning, which do not fit in a spreadsheet. It also assumes you stay put; moving early is what makes buying expensive.
Any of the 31 NetWorthTrackr supports, which matters here — most rent-vs-buy calculators assume US prices, rates and closing costs.
No. Everything is calculated in your browser.
Estimates only, not financial advice. Every figure is calculated in your browser from what you typed — nothing is sent to us and nothing is stored.All tools →