Rent vs Buy Calculator

Enter your numbers to see the real break-even point between renting and buying a home.

1 Renting

Your current or expected rent details.

Monthly Rent

€

Annual Rent Increase: 3%

2 Buying

Home purchase details and costs.

Home Purchase Price

€

Down Payment: 20%

Mortgage Interest Rate (%)

Mortgage Term

Property Tax Rate: 1.2%

Annual Maintenance: 1% of home value

3 Your Plans

How long you plan to stay and market expectations.

How long you plan to stay: 7 years

Annual Home Appreciation: 3%

Why This Matters

The rent vs buy decision is one of the biggest financial choices most people will make — yet most people decide based on gut feeling rather than math. "Renting is throwing money away" is one of the most persistent financial myths. In reality, the answer depends entirely on your specific numbers and timeline.

When you buy, you're not just paying a mortgage. You're paying property tax, maintenance (typically 1% of home value per year), insurance, and opportunity cost on your down payment. When you rent, you're paying for flexibility and freedom from maintenance costs — but you're not building equity.

The break-even point — when buying becomes cheaper than renting — varies dramatically by market. In expensive cities, it can take 7-10 years. In affordable markets, it might be just 2-3 years. This calculator does the math for your specific situation so you can make an informed decision.

Frequently Asked Questions

How is the break-even point calculated?

The calculator compares cumulative renting costs (rent payments with annual increases) against cumulative buying costs (mortgage payments, maintenance, property tax, minus equity gained through appreciation and principal paydown). The break-even point is when buying becomes cheaper overall.

Does this account for opportunity cost of the down payment?

Yes. The calculator considers what your down payment could earn if invested in the stock market instead (assumed 7% average annual return). This is factored into the net worth comparison.

Why does it flag buying as risky under 3 years?

Buying costs are front-loaded — closing costs, moving expenses, and early mortgage payments are mostly interest. Most buyers don't break even for 3-5 years. Selling before then often means losing money after transaction costs.

Are closing costs included?

The calculation includes estimated closing costs of 2-5% of the purchase price for buying, and selling costs of 5-6% when you eventually sell. These are significant costs that many rent-vs-buy comparisons overlook.