Rent vs Buy Calculator
Rent vs Buy & Housing DecisionsProject net worth for renting, buying with cash, and buying with a mortgage.
€2,551,636
Net worth after 30 years
€2,726,376
Net worth after 30 years
€2,696,031
Net worth after 30 years
Net worth projection
- Buy with cash
- Mortgage
- Keep renting
Line chart comparing net worth over time for buying with cash, buying with a mortgage, and continuing to rent.
Projection details
| Year | Buy with cash | Mortgage (down €40,000) | Keep renting | House value |
|---|---|---|---|---|
| 0 | €300,000 | €300,000 | €300,000 | €200,000 |
| 5 | €486,400 | €506,144 | €502,730 | €205,050 |
| 10 | €724,314 | €766,820 | €759,891 | €210,228 |
| 15 | €1,028,307 | €1,097,076 | €1,086,294 | €215,537 |
| 20 | €1,417,069 | €1,516,168 | €1,500,764 | €220,979 |
| 25 | €1,914,585 | €2,048,746 | €2,027,218 | €226,559 |
| 30 | €2,551,636 | €2,726,376 | €2,696,031 | €232,280 |
How this calculator works
Renting is often framed as throwing money away, but that comparison ignores what happens to the capital you do not tie up in a property. This calculator makes that trade-off explicit by projecting your total net worth, not just your housing cost, under three scenarios over the same period.
In the first scenario you buy the house outright with cash. Your remaining capital stays invested, and you pay the recurring costs of ownership: property tax, insurance, and maintenance. In the second you buy with a mortgage, so only the deposit leaves your portfolio, but a monthly mortgage payment reduces what you can keep investing, and the outstanding loan balance is subtracted from your net worth. In the third you keep renting and keep everything invested, while rent rises each year.
The result is sensitive to two assumptions above all: your expected investment return and the rate at which the property appreciates. A one or two point change in either can flip which scenario wins. Treat the output as a way to see how the answer moves as your assumptions move, not as a prediction.
Frequently asked questions
- What exactly is being compared?
- Total net worth at five year intervals: investments plus the value of the property, minus any outstanding mortgage balance. Comparing net worth rather than monthly outgoings is what makes the three scenarios comparable, because it captures both the equity you build and the returns you forgo.
- Why does renting sometimes come out ahead?
- Because the capital you would have spent on a deposit or a purchase stays invested and compounds. If your expected investment return is meaningfully higher than the rate the property appreciates, and rent is low relative to ownership costs, renting and investing the difference can end up ahead. Lower the investment return or raise the appreciation rate and the result usually flips.
- Which ownership costs are included?
- Property tax as a percentage of the property value, annual home insurance, and maintenance as a percentage of the property value. These are charged in both purchase scenarios. Transaction costs such as stamp duty, legal fees, and estate agent fees are not included, and they typically favour renting when the holding period is short.
- How is the mortgage scenario calculated?
- The deposit is taken from your starting capital, and the rest is borrowed at the rate and term you set. The monthly payment plus the ownership costs are deducted from what you can invest each month, and the outstanding loan balance at each point in time is subtracted from your net worth.
- What if I want to model buying with no mortgage at all?
- Set the down payment to 100 percent. The mortgage scenario then borrows nothing and converges on the buy with cash scenario, which is a useful way to check that your inputs behave the way you expect.
- How accurate are the projections?
- They are arithmetic, not forecasts. Every figure depends on assumptions about returns, appreciation, and rent inflation that nobody can know in advance, and real markets do not deliver a smooth annual percentage. Use the calculator to test how sensitive the decision is to your assumptions, then talk to a qualified advisor.
These calculators are for educational purposes only and are not financial advice. Always consult a qualified financial advisor, mortgage professional, or your bank before making a commitment.
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