Rent vs. Buy Calculator
Compare the true cost of owning a home (including buying costs, upkeep, and the equity you build) against renting over your time horizon. Free and private — nothing leaves your browser.
Rent vs. Buy
Which builds more wealth over your horizon?
How it works
NetCostOwn = Down + BuyCosts + Σ Payments + Σ Upkeep − EquityAtEnd vs. CostRent = Σ Rent × (1 + g)^yearThe comparison tallies every euro that leaves your pocket in each scenario over your time horizon, then credits the owner with the equity they end up holding. Owning starts deep in the red — the down payment plus roughly 3% of the price in one-off transaction costs — and pays interest-heavy mortgage payments plus about 1.2% of the home's value per year in upkeep, insurance, and property tax. In exchange, the loan balance falls and the home (hopefully) appreciates. Renting has no entry cost and no equity: just rent that compounds at its own growth rate. The verdict is simply which pile of net costs is smaller when you'd sell.
Worked example
A €400,000 home with 20% down at 4.5% over 30 years, versus €1,800 rent, held for 10 years with 3% appreciation and 2% rent growth: renting costs about €236,500 in total, while owning nets out around €60,300 after crediting roughly €270,000 of equity — buying comes out ahead by about €176,000. Shrink the stay to 3 years and the transaction costs barely get amortized: the same numbers flip toward renting.
Frequently asked questions
Is it cheaper to rent or buy?→
It depends on prices, rates, rents, and — critically — how long you stay. Buying carries large one-off costs (transfer tax, legal fees), so short stays usually favor renting, while long horizons let equity building and appreciation win.
What costs does buying include beyond the mortgage?→
This calculator includes purchase costs of about 3% of the price and ongoing ownership costs (maintenance, insurance, property tax) of about 1.2% of the home's value per year, alongside your down payment and monthly payments.
Does this account for investing my down payment instead?→
No — the opportunity cost of the deposit is deliberately excluded to keep the model transparent. If you would genuinely invest the down payment in index funds, the comparison shifts a few points toward renting.
No black boxes — the exact formula is shown above · Last reviewed July 2026