» To Buy or Rent Real Estate?

Notice! Calculations are estimates only and the results are highly dependent on the inserted values! Calculator does not take into account tax deductions, insurance costs, real estate sales costs, property taxes, utility costs, inflation etc. It is assumed that real estate can be sold with the estimated market value. Total Net Flow shows the difference between the maintained cash at the end of period and costs during the period. Time value of the money is not taken into account!

Rent assumptions

Monthly rent payment
Expected Annual Rent Increase
Initial renting costs (broker's fee, rent deposit etc.)

Purchase assumptions

Property Purchase Price
Down payment
Loan Amount
Loan Term
Annual interest rate
Loan costs (contract fee, notary fee, duties etc.)
Annual real estate appreciation

Other assumptions

Annual interest rate/
Expected average return p.a.
Years (N) You plan to use this real estate




Buying (with loan)

Price of real estate after appreciation
Remaining loan balance after N years
Future value of deposit/ remaining equity
Monthly payment in the first year
Total payments during N Years

Total Net Flow
Advantage of purchase
Rent ratio

Rent ratio - real estate purchase price divided to annual rental payments. If the ratio is significantly higher than 20, then it is better to rent; if significantly lower than 20, than it is more reasonable to purchase/buy.