This buy vs rent calculator compares the net cost of buying a home against renting an equivalent one and investing the money you’d otherwise put toward a down payment and buying costs.
A guaranteed asset vs. an invested alternative
Buying ties up your down payment and buying costs in a home whose value may rise or fall, while your mortgage payments build equity over time. Renting keeps that same money liquid and invested instead, growing (or shrinking) at your expected investment return while you pay rent that typically increases each year.
Example
With a €250,000 home, a €50,000 down payment, a 3% mortgage rate over 30 years, 12% buying costs, €1,000 monthly rent rising 2% a year, and a 5% expected investment return over a 15-year horizon: buying comes out ahead by roughly €66,300 over the period.
For guidance only, not financial advice — it doesn’t include taxes or every possible expense.