Buy or Rent Calculator
Compare the total costs of buying and renting. Find out which is more worthwhile for you. Includes all acquisition costs and examples, updated for 2026.
Buy
Rent
Break-even (buying pays off from)
approx. 18 years
Monthly Loan Rate
€1,443.75
| After | Property Value | Remaining Debt | Buy Advantage |
|---|---|---|---|
| 10 years | €426,648.05 | €239,697.93 | -€18,626.02 |
| 20 years | €520,081.59 | €132,893.63 | +€6,014.56 |
| 30 years | €633,976.55 | €0.00 | +€9,542.61 |
Positive value = buying is more advantageous.
Note: These calculations are for informational purposes only and do not replace professional tax or financial advice. All information without guarantee.
FAQ
Frequently Asked Questions
Is it better to buy or rent in Germany?
The answer depends on property prices, rent levels, interest rates, investment alternatives, and how long you plan to stay. Buying generally becomes more favorable after 10-15 years in the same location.
What factors should I consider in the buy vs. rent decision?
Key factors include purchase price-to-annual-rent ratio (under 25 favors buying), opportunity cost of equity, maintenance costs (1-2% of property value annually), and your personal flexibility needs.
What ancillary costs should I budget for a property purchase?
In Germany ancillary purchase costs typically run 10–15 % of the purchase price: property transfer tax (3.5–6.5 % depending on state), notary and land register (~1.5–2 %), and optionally agent commission (up to 3.57 %).
Guide
Quick Answer
The buy-or-rent calculator compares the long-term costs of home ownership with renting, including an alternative investment of the difference.
What is the Buy or Rent Calculator?
The buy-or-rent calculator compares the long-term costs of home ownership with renting, including an alternative investment of the difference.
How does the Buy or Rent Calculator work?
Enter the purchase price, rental costs, interest rate and expected price appreciation. The calculator compares total costs over the chosen period. The difference between the rent and the mortgage payment is invested alternatively. Net wealth is compared at the end.
Key Data and Facts
Rule of thumb: a price-to-rent ratio above 25-30 annual cold rents favours renting. Maintenance reserve: approx. 1-2% of property value/year. Long-term appreciation: approx. 1-3% p.a.
Step-by-Step Guide
How to compare buying and renting step by step: 1. Calculate the buying scenario: purchase price + ancillary costs (8-12 %) = total investment. Define your equity and loan. Calculate the monthly instalment (interest + repayment). Add maintenance (1-2 % per year) and property tax. 2. Calculate the renting scenario: current cold rent + utilities = warm rent. Factor in an annual rent increase (about 2-3 %). 3. Wealth development when renting: the difference between the total cost of buying and the rent is invested monthly. Take into account the return of the alternative investment (e.g. 5 % ETF). 4. Wealth development when buying: the remaining debt decreases through repayment. The property value rises (about 1-3 % per year). 5. Compare after 20-30 years: net wealth from buying = property value minus remaining debt. Net wealth from renting = portfolio value. 6. Check the purchase price factor: more than 25-30 annual cold rents tends to favour renting.
Calculation Example
Buying: 350.000 EUR, 3 % interest, 2 % repayment = 1.458 EUR/month + 350 EUR incidental costs. Renting: 950 EUR including heating. The difference of 858 EUR/month invested at 5 %: after 25 years approx. 510.000 EUR portfolio value vs. approx. 420.000 EUR property value.
Sources · E-E-A-T
Official sources
Calculations are based on applicable German laws and official data:
- Bürgerliches Gesetzbuch (BGB)
- Rechtsanwaltsvergütungsgesetz (RVG)
- Bundesministerium der Finanzen (BMF)
Full methodology at Methodology.
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