Rent or buy?
Compare the total costs of renting and buying a property over 5, 10 and 20 years. Change the down payment, interest rate and rent growth to see when buying pays off.
Rent vs. buy
Monthly mortgage payment
€1,050
Current rent
€900/mo
Difference
€150
renting cheaper
| After years | Buy (total) | Rent (total) | Difference |
|---|---|---|---|
| 5 yrs | €113,010 | €57,339 | +€55,671 |
| 10 yrs | €176,019 | €123,810 | +€52,209 |
| 20 yrs | €302,038 | €290,200 | +€11,838 |
Conservative calculation — buying does not deduct property appreciation and ignores the opportunity cost of the down payment. Rent compounds by the annual increase.
What this calculation does not include
- Property value growth — buying is better in the long run if the property gains value.
- Opportunity cost of the down payment — if you invested the down payment in the stock market, it would yield a return instead of “sitting” in the walls.
- Ownership costs (maintenance, property tax, heating) — you can roughly estimate these in the “Estimated monthly costs” section on the listing page.
- Rental risks — a new negotiation every year, the possibility of termination, less freedom to renovate.