Rent or buy a home?
Compare the wealth you'd have buying with a mortgage or renting and investing the difference.
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Result
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Calculation version: personal@1.0.0. The calculation runs in your browser: we don't send or store the amounts you enter. We only count, without identifying you, that the tool has been used.
How to use it
- 1Enter the home price, purchase costs, down payment and mortgage terms.
- 2Enter the rent of an equivalent home, how much rents rise and the appreciation you assume.
- 3Set the return you'd get investing the money you don't put into the home, and the horizon in years.
How it calculates
- Buying: wealth = home value × (1 − selling costs) − outstanding debt + what was invested in months when buying was cheaper than renting.
- Renting: the down payment and purchase costs are invested at the start and, each month, the difference is invested if renting is cheaper.
- Mortgage payment with the French system; owner costs as a % of the price per year; monthly return equivalent to the annual one entered.
Verifiable example
With a €250,000 home, 10% costs, 20% down payment, a 3% mortgage over 30 years (€843.21/month), 1% annual costs, 2% appreciation, €1,000 rent rising 2% and a 4% return: after 15 years, buying leaves €226,971 of wealth and renting €137,021; buying starts to pay off in year 6.
Limitations
- Before taxes and without deductions.
- Appreciation, rent rises and returns are assumptions, not forecasts.
- It doesn't value the flexibility of renting or the security of owning. It isn't financial advice.
What the paid levels will add
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Indicative result
It doesn't constitute financial, tax or investment advice. Check important decisions with a professional.