Rent vs Buy Calculator
Buying a home feels right.Is it the right money decision?
Compare the full cost of owning (mortgage, tax, maintenance) against renting the same home and investing the difference — over any timeframe, with your own numbers, in under a minute.
Result
Average cost based on the length you stay, for the next years.
| Staying Length | Avg. Buying Cost (Monthly) | Avg. Buying Cost (Annual) | Avg. Renting Cost (Monthly) | Avg. Renting Cost (Annual) |
|---|
Renting instead — what do you do with the difference?
If renting comes out ahead, the next question is usually what to do with the money you're not putting into a down payment: invest it in the market, or put it into a second property to rent out? Try the buy to let investment calculator to compare that decision directly.
Methodology
How it works
- 1
Enter the property, loan, and owning costs, then what the same home would rent for.
- 2
Both paths are built year by year: the renter invests the down payment and the gap between renting and owning at your expected return.
- 3
At the end of the comparison period, home equity is weighed against the investment portfolio, and the verdict shows which path leaves you wealthier.
Getting started
How buying works, country by country
The mechanics of buying a home differ a lot by country — taxes, fees, and financing steps aren't the same everywhere. Pick your country for the basics.
- 1
Get pre-approved for a mortgage so you know your realistic budget and rate.
- 2
Order a title search and buy title insurance — this confirms the seller actually owns the property free of liens or disputes before you close.
- 3
Budget 2–5% of the price for closing costs, on top of a typical 10–20% down payment.
- 4
Factor in property tax and homeowners insurance — they vary a lot by state and aren’t optional.
- 5
Compare your monthly payment (principal, interest, tax, insurance) against local rent for the same home.
- 1
Get a Decision in Principle from a lender before you start viewing homes seriously.
- 2
Have your solicitor run local searches and check the title at HM Land Registry — this is what actually confirms legal ownership and flags any disputes, restrictions, or planning issues.
- 3
Budget for Stamp Duty Land Tax — and note the surcharge if this is an additional property.
- 4
Factor in solicitor/conveyancing fees and a survey, typically a few thousand pounds combined.
- 5
Compare your mortgage payment against the same home’s rent — London’s price-to-rent ratio is usually higher than the rest of the UK.
- 1
Get financing pre-approved (SFH/SFI) — rates and terms vary significantly by bank.
- 2
Pull the matrícula atualizada (updated property registry record) and certidões negativas (clearance certificates) to confirm the seller has clear title and no outstanding debts tied to the property.
- 3
Budget for ITBI (2–3%) plus cartório/registration fees (roughly 1–2%) on top of your entrada (down payment).
- 4
Check the FGTS options if you qualify — it can reduce how much cash you need upfront.
- 5
Compare the parcela (installment) against local aluguel (rent) for an equivalent home.
- 1
Get a home loan sanction letter from your bank to lock in your eligible amount and rate.
- 2
Have a lawyer verify the title and pull the Encumbrance Certificate to confirm the seller has clear ownership and the property is free of loans or legal disputes.
- 3
Budget for stamp duty and registration — commonly 5–7% of the property value, varying by state.
- 4
Check RERA registration status of the project before committing any booking amount.
- 5
Compare your EMI against the local rent for a similar flat, especially in Mumbai, Delhi, or Bengaluru where price-to-rent ratios run high.
- 1
Get a Finanzierungsbestätigung (financing confirmation) from your bank before making offers.
- 2
Have the notary check the Grundbuch (land register) — this is the official record of ownership, mortgages, and any rights or restrictions attached to the property.
- 3
Budget for Grunderwerbsteuer (3.5–6.5% depending on the state), notary, and registration — often 8–12% combined.
- 4
Note that the buyer often pays some or all of the agent commission (Maklerprovision), unlike in many other countries.
- 5
Compare your mortgage payment against Kaltmiete (base rent) for an equivalent home.
- 1
Get an accord de principe from your bank confirming your borrowing capacity.
- 2
The notaire verifies the title and checks for any mortgages, easements, or disputes attached to the property — this is a mandatory, built-in step of buying in France, not optional.
- 3
Budget for frais de notaire — typically 7–8% of the price for an existing home, much lower (2–3%) for new builds.
- 4
Check whether a compromis de vente deposit (usually 5–10%) is required to secure the property.
- 5
Compare your mortgage payment against the loyer (rent) for the same home, especially in Paris where prices run high relative to rent.
When renting wins, and when buying does
Buying tends to win the longer you stay — closing costs and upfront fees get spread across more years, and your fixed mortgage payment doesn't rise with inflation while rent typically does. Renting tends to win over shorter horizons, in markets where home prices are high relative to rent, or when the money freed up by not buying could earn a strong return elsewhere. There's no universal answer — it depends on your local price-to-rent ratio, how long you'll stay, and what you'd otherwise do with the down payment. Adjust the numbers above for your own city to see where your breakeven point falls.
Latest from the blog
Read our guides on renting vs. buying, mortgages, and housing finance.