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Rent vs Buy Calculator
Is Buying Worth It in Your Country?

Compare the true 30-year financial outcome of buying vs renting. See your net worth crossover point, three market scenarios, total cost of ownership, and what happens to the renter's invested deposit. With AI explanation by Cal.

Country
🏠
Compare Buying vs Renting
The Property
€
€
20% of purchase price
%
yrs
%
Auto-filled for selected country. Edit if needed.
€
Notary, survey, broker fees, etc.
Ongoing Ownership Costs
%
% of home value per year. 1% is a standard assumption.
€
€
€
VvE bijdrage (NL) or service charge. Enter 0 if none.
Renting Alternative
€
Monthly rent for a comparable property.
%
Expected annual rent increase. NL: 2.5–4%, UK: 3–5%.
Market & Investment Assumptions
%
Expected annual house price growth.
%
Annual return if renter invests the deposit + monthly savings difference.
%
yrs
How many years to compare. Buying usually wins longer term.
⚖ Buy vs Rent Analysis
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Buyer Net Worth
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Renter Net Worth
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Crossover Year
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Winner Advantage
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Three Market Scenarios
🌫 Bear Market
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▶ Base Case
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📈 Bull Market
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Net Worth Over Time: Buyer vs Renter
Buyer net worth
Renter net worth
30-Year Cost Breakdown
🏠 Buying — Total Outgoings
Down payment—
Transfer tax & buying costs—
Total mortgage payments—
Total interest paid—
Maintenance (total)—
Property tax (total)—
Insurance (total)—
HOA / service charge—
Total cost of owning—
Home value at end—
Net position—
🏠 Renting — Total Outgoings
Total rent paid—
Deposit invested (start)—
Monthly savings invested—
Investment portfolio value—
Total rent paid—
Portfolio value at end—
Net position—
Break-Even Year
—
buying first beats renting
Monthly Mortgage
—
principal + interest
True Monthly Cost (Buy)
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incl. maintenance, tax, insurance
Price-to-Rent Ratio
—
above 20 = renting may win
Year-by-Year Net Worth Comparison
Year Buyer Net Worth Renter Net Worth Difference Leader
✦ Cal, AI Explanation
Cal is analysing your buy vs rent comparison...
💬 Ask Cal a follow-up question
Cal
Your buy vs rent comparison is ready. Ask me about the impact of a larger deposit, what happens if house prices fall, or how the renter's investment return affects the outcome.

🏠 Buy vs Rent — Key Factors

Price-to-rent ratio divides the purchase price by annual rent. Below 15: buying clearly wins. 15–20: neutral. Above 20: renting may be better.
The crossover point is when the buyer's net worth first exceeds the renter's. This typically takes 5–12 years depending on market conditions.
The renter's invested deposit is the most important variable. If a renter does not invest their deposit and monthly savings, buying almost always wins.
NL overdrachtsbelasting is 2% for first-time buyers (under 35, property under €510.000) and 10.4% for others as of 2025.
Buying is not always better. High transfer taxes, low appreciation, and short holding periods can make renting the rational financial choice.

Related Calculators

Mortgage Payment Calculator→ House Affordability Calculator→ Rental Yield Calculator→ Compound Interest Calculator→ FIRE Calculator→

Related Guides

Buying vs Renting in the Netherlands→ Price-to-Rent Ratio Explained→ Overdrachtsbelasting 2025 Guide→

How the Buy vs Rent Calculator Works

This calculator compares the long-term financial outcome of buying a home versus renting an equivalent property and investing the difference. It tracks net worth for both the buyer and the renter year by year, accounting for every significant cost and benefit on both sides.

The key insight is that renting is not simply "throwing money away." A renter who invests their deposit and the monthly difference between rent and ownership costs can build significant wealth. The question is whether the buyer's home equity and price appreciation outpaces the renter's investment portfolio over your chosen time horizon.

What the Calculator Tracks for the Buyer

Buyer Net Worth = Home Value − Remaining Mortgage Balance
Annual costs: mortgage payments + maintenance + property tax + insurance + HOA
Transfer tax and buying costs are one-off upfront costs
Home value grows at the appreciation rate each year
Mortgage interest deductibility (hypotheekrenteaftrek in NL) is not included in the base calculation as it varies significantly by income and situation. Consult a tax adviser for your specific position.

What the Calculator Tracks for the Renter

Renter Net Worth = Investment Portfolio Value
Starting investment = down payment + transfer tax + buying costs (all invested instead)
Monthly investment = difference between true ownership cost and rent
If rent > ownership cost, the buyer has the higher monthly outgoing
The renter's investment return is assumed to be consistent. In reality, returns vary. The 7% default reflects long-run real returns from a globally diversified index fund.

The Price-to-Rent Ratio

The price-to-rent ratio is calculated by dividing the purchase price by annual rent. It is a quick heuristic for whether buying or renting is likely to win:

Below 15 — buying is usually the clear financial choice. Between 15 and 20 — the decision depends heavily on how long you plan to stay and local market conditions. Above 20 — renting and investing the difference becomes increasingly competitive. In Amsterdam, the ratio has exceeded 30 in recent years, which is why many financial analysts argue renting is not always the inferior choice in the Dutch market.

Transfer Tax by Country — 2025

CountryTax NameRateNotes
🇳🇱 NetherlandsOverdrachtsbelasting2% or 10,4%2% for first-time buyers under 35 on properties under €510.000. 10,4% for investors and others.
🇬🇧 United KingdomStamp Duty Land Tax0%–12%Progressive. 0% on first £250k (£425k for first-time buyers). Surcharge for second homes.
🇩🇪 GermanyGrunderwerbsteuer3,5%–6,5%Varies by state (Bundesland). Bavaria 3,5%, North Rhine-Westphalia 6,5%.
🇧🇪 BelgiumRegistratierechten3%–12,5%3% (Flanders) or 12,5% (Brussels/Wallonia). Reduced rates for primary residence.
🇺🇸 United StatesTransfer Tax0,01%–2%+Varies widely by state and municipality. New York up to 2,9%, most states 0,1%–0,5%.

Frequently Asked Questions

Does the calculator include mortgage interest tax deductibility?+
No — mortgage interest deductibility (hypotheekrenteaftrek in the Netherlands, mortgage interest relief in the UK until 2020) is not included in the base calculation because it varies significantly based on your personal income tax rate, the phase-out rules, and your specific mortgage structure. In the Netherlands, the deduction is limited to the box 1 rate (37,48% in 2025) and is being gradually reduced. Adding your expected deduction as a negative cost in the "other buying costs" field is possible but consult a tax adviser for your specific situation.
Why does the renter's invested deposit matter so much?+
The renter's invested deposit is often the decisive variable in the comparison. A buyer puts their deposit into illiquid home equity. A renter who invests that same amount in a globally diversified index fund at 7% per year can generate substantial returns over 20–30 years. Many rent vs buy analyses ignore this, making buying look like the obvious choice. This calculator properly accounts for the opportunity cost of the deposit — the most honest way to compare the two paths.
How long do I need to stay for buying to make sense?+
The break-even point — when the buyer's net worth first exceeds the renter's — depends heavily on transfer tax, appreciation rate, and the price-to-rent ratio. In markets with high transfer tax (Netherlands at 10,4% for non-first-time buyers) and high price-to-rent ratios, the break-even can take 10–15 years. In markets with low transfer tax and strong appreciation, the break-even can be 3–5 years. As a general rule, if you plan to stay fewer than 5 years, renting is often the better financial choice.
What is the price-to-rent ratio and what does it mean?+
The price-to-rent ratio is the purchase price divided by the annual rent for a comparable property. A ratio of 15 means the purchase price is 15 times the annual rent — roughly the point where buying and renting are financially equivalent over the long run. Below 15, buying tends to win. Above 20, renting and investing becomes increasingly competitive. In many major European cities including Amsterdam, London, and Paris, ratios have exceeded 25–35, which is why renting is not always the financially inferior choice in those markets.
Should I include my home in my net worth calculation?+
Your primary residence is an asset but a special one — it is illiquid, expensive to sell (transfer tax, agent fees), and generates no income unless you rent it out. Some financial planners exclude it from investable net worth precisely because you cannot easily convert it to cash without also needing somewhere else to live. This calculator includes home equity in buyer net worth because over a long horizon the equity is real and accessible, but it is worth understanding that home equity is fundamentally different from a liquid investment portfolio.