How does the rent vs buy calculator decide which is better?

It models both scenarios over a chosen time horizon. Buying tracks down payment + closing costs + monthly mortgage + maintenance + property tax, building equity as principal is paid down and the property appreciates. Renting tracks monthly rent (with annual escalation) plus opportunity cost on the down payment invested elsewhere. The crossover point is the year buying becomes cheaper cumulatively.

What's the most important assumption?

Time horizon. Buying carries large upfront friction (down payment, taxes, agent fees) that takes years to amortise — typically 5–7 years in stable markets, longer in high-tax jurisdictions. If you'll move within 3 years, renting almost always wins. Beyond 10 years, buying typically wins unless rent is unusually cheap relative to home prices.

Does the calculator account for opportunity cost?

Yes. The down payment you'd put on a house, plus the difference between rent and mortgage when renting is cheaper, is invested at your expected market return rate. This 'opportunity cost' is the single biggest factor in long-horizon comparisons — a 7% real return on €100k over 20 years compounds to ~€387k, often dwarfing home equity in markets with low appreciation.

What if I'm buying with cash, no mortgage?

Set the mortgage rate to 0% and the loan-to-value to 0%. The calculator will model an all-cash purchase, where you forgo the entire opportunity cost of the home price upfront. All-cash buying typically takes longer to break even versus renting because you're tying up more capital that could be earning the market return.

Rent vs Buy Calculator — Renting vs Buying a Home Online

Housing Decision

Rent vs Buy

Compare the true cost of renting versus buying a home over your time horizon.

Format

Home Price 300,000 Down Payment 20% (60,000) Mortgage Rate 5% Monthly Rent 1,500

Rent Increase 3%/yr Home Appreciation 3%/yr Time Horizon 10 years

Property tax 1.0%/yr Maintenance 1.0%/yr Home insurance 0.30%/yr

Monthly Mortgage

1,288

Monthly Rent

1,500

Home Equity at 10yr

207,954

Educational tool. Not financial advice. Rent-vs-buy depends on local property tax, maintenance reserves, opportunity cost of down payment, mortgage deductibility, and length of stay — all of which vary by jurisdiction.

How to compare rent vs buy

Enter the purchase price, down payment, mortgage rate and term for the buy scenario.
Enter the equivalent monthly rent and expected annual rent increase for the rent scenario.
Add ownership costs — property tax, maintenance (budget 1-2% of price per year), insurance and HOA if applicable.
The calculator projects both scenarios over time, surfacing the break-even year where buying overtakes renting financially.

Common use cases

Deciding whether to buy or continue renting in a high-price market where the monthly payment of ownership vastly exceeds equivalent rent.
Accounting for how long you plan to stay — short stays almost always favour renting after closing costs.
Stress-testing a purchase against scenarios where home prices stagnate or fall in the first five years.
Comparing the financial outcome of investing the down payment in a diversified portfolio instead of buying.

Frequently asked questions

Which scenario wins more often?

Depends entirely on the price-to-rent ratio, expected stay and local appreciation. Generally renting wins in very expensive markets for short stays; buying wins in moderately priced markets with stays of 7+ years.

Should I include opportunity cost?

Yes. The down payment and maintenance outlays would otherwise earn a return elsewhere — include that in the rent scenario to compare fairly.

Does this account for building equity?

Yes. The buy scenario accumulates equity as the mortgage amortises and the property appreciates (or depreciates, if you model that). Rent scenarios track the invested down payment separately.

Is my data stored?

No. All calculations run locally in your browser.

About renting vs buying

Buying builds equity but involves upfront costs, maintenance, and mortgage interest. Renting offers flexibility but no equity. The right choice depends on time horizon and local market.

Rent vs buy cost comparison chart
Home equity projection
Monthly mortgage calculation
Adjustable appreciation and rent increase
Custom time horizon

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Rent vs Buy — Renting vs Buying & Rent vs Mortgage Online