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Rent vs Buy Calculator

Buying is priced here with real amortisation, property tax, maintenance, three per cent in closing costs and six per cent to sell. Renting is priced with your annual increase and the deposit invested at seven per cent instead. Enter your numbers and the calculator names the year buying overtakes renting, or says it never does.

1 Renting

Your current or expected rent details.

€

2 Buying

Home purchase details and costs.

€

3 Your Plans

How long you plan to stay and market expectations.

How the break-even is calculated

The comparison runs year by year rather than as a single sum, which is why it can name a break-even year at all. The monthly mortgage payment is the standard amortisation formula on the loan after your deposit: principal times the monthly rate times one plus the monthly rate to the power of the number of payments, all over that same power minus one. Each year the model adds a year of payments, property tax at your percentage of the current home value and maintenance at your percentage of the same, then walks the twelve months one at a time to work out how much principal was actually paid — interest first, principal second — so the equity figure is real amortisation rather than a straight line.

The buying side is then netted: everything paid in, plus the deposit and closing costs, minus the equity you would hold, plus the cost of selling. Closing costs are fixed at three per cent of the purchase price and selling costs at six per cent, and both are ours rather than a quoted local figure — they are in the right region for a lot of markets and wrong for some. The renting side is the rent paid so far, compounded by your annual increase. The break-even year is the first year the netted buying cost falls below the rent paid, and it can be reported as "never" inside your timeline.

The wealth comparison is the second calculation and it is deliberately generous to renting: the deposit and the closing costs are treated as invested instead, compounding at seven per cent a year. That seven per cent is an assumption, not a forecast, and it is the single figure most likely to flip the verdict. Under three years the tool refuses to declare a winner and says buying is risky instead, because the transaction costs at both ends dominate everything else over a stay that short. Nothing here accounts for tax relief on mortgage interest, stamp duty or its equivalents, or a market that falls.

Every figure above was read out of the code that runs on this page. Where a number is our own judgement rather than a published one, the note says so and cites nothing. Method last checked 21 August 2026.

Why renting or buying depends on your timeline

The rent vs buy decision is one of the biggest financial choices most people will make, and it is easy to decide it on feeling rather than arithmetic. "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 (1% of the home's value a year is a common rule of thumb), insurance, and the cost of tying up 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 widely by market, because it turns on the gap between rents and prices. This calculator does the math for your own numbers. It leaves out insurance, tax relief and moving costs, so treat the year it names as a guide.

Frequently Asked Questions

How is the break-even point calculated?
The calculator compares the rent paid so far (with your annual increase) against the net cost of buying: deposit, closing costs, mortgage payments, property tax and maintenance, minus the equity you hold, plus the cost of selling. The break-even year is the first year the net cost of buying falls below the rent paid.

Does this account for opportunity cost of the down payment?
Yes, in the net worth comparison only. The down payment and closing costs are treated as invested instead, growing at 7% a year — our assumption, not a forecast. The break-even year does not use it: it compares rent paid with the net cost of buying.

Why does it flag buying as risky under 3 years?
Buying costs are front-loaded: the calculator charges 3% to buy and 6% to sell, and early mortgage payments are mostly interest. Over a stay that short those costs outweigh the equity built, so under 3 years the calculator shows a caution instead of a winner.

Are closing costs included?
Yes. The calculation charges closing costs of 3% of the purchase price when you buy and selling costs of 6% of the home's value when you sell. Both are fixed figures of ours: about right for many markets, wrong for some, and you cannot change them here.

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