Buy or Rent Calculator Germany
Buy or rent in Germany? Compares owner wealth with renter wealth plus invested equity over 30 years, with loan payment and the break-even year.
Buy
Total purchase costs: 12.07 % = €42,245.00 (transfer tax, notary approx. 1.5%, land register approx. 0.5%, broker)
Rent
Break-even: buying is ahead after
23 years
Monthly Loan Payment
€1,476.96
Loan: €322,245.00 · Maintenance/month: €437.50 · repaid after 29.0 years
| After | Wealth (buy) | Wealth (rent) | Buy Advantage |
|---|---|---|---|
| 10 years | €181,437.06 | €208,322.86 | -€26,885.80 |
| 20 years | €384,131.40 | €389,569.89 | -€5,438.48 |
| 30 years | €662,231.19 | €640,191.36 | +€22,039.83 |
Wealth (buy) = property value − remaining debt + the buyer's invested savings; wealth (rent) = portfolio from equity and the monthly difference. Whoever pays less in a month invests the difference – after the loan is repaid, that is the buyer. Positive value = buying is more advantageous.
Simplified model: interest rate constant over the whole term (no follow-up financing), no tax on investment income, no selling costs, property tax and non-recoverable costs only via the maintenance rate.
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.
How does the investment return affect the result?
The calculator assumes that as a tenant you invest your equity and, each month, the amount by which the loan payment plus maintenance exceeds the rent; if the buyer pays less than the rent (at the latest after repayment), the buyer invests the difference. With the defaults (350,000 euros purchase price in NRW with a broker, 70,000 euros equity, 3.5% interest, 2% repayment, 1.5% maintenance, 1,200 euros cold rent, 2% rent increase and appreciation), buying comes out ahead after 23 years at a 5% return, after 13 years at 4% and after 10 years at 3%; at 6% renting stays ahead for the full 30 years. So run the calculation with several realistic returns before basing a decision on the result.
Guide
What is the Buy or Rent Calculator Germany?
The buy-or-rent calculator compares, over 30 years, your wealth as an owner (property value minus remaining debt) with your wealth as a tenant who invests the equity and the monthly difference saved.
How does the Buy or Rent Calculator Germany work?
Enter the purchase price, equity, federal state, broker fee, interest rate, repayment, maintenance, cold rent and the expected rent increase, property appreciation and investment return. The purchase costs follow from the state's real estate transfer tax, approx. 1.5% notary, approx. 0.5% land register and the buyer's broker share. The calculator simulates month by month: whoever pays less invests the difference at the chosen return – after the loan is repaid, that is the buyer. It shows the wealth of both options after 10, 20 and 30 years and the year from which buying is ahead.
Key Data and Facts
Real estate transfer tax 2026: 3.5% (Bavaria) to 6.5% (Brandenburg, NRW, Saarland, Schleswig-Holstein); with notary (approx. 1.5%), land register (approx. 0.5%) and broker (3.57%) purchase costs come to roughly 9–12%. Rule of thumb: a price-to-rent ratio above 25-30 annual cold rents tends to favour renting. Maintenance reserve: approx. 1-2% per year. Long-term appreciation: approx. 1-3% p.a.
Step-by-Step Guide
How to compare buying and renting step by step: 1. Buying scenario: purchase price plus purchase costs (transfer tax by federal state, notary approx. 1.5%, land register approx. 0.5%, broker 3.57% if applicable). The equity covers the purchase costs first, the rest is financed. Monthly payment = loan × (interest + initial repayment) / 12, plus maintenance (1-2% of the purchase price per year; property tax and non-recoverable costs should be included in it). 2. Renting scenario: cold rent with an annual increase (about 2-3%). Service charges are paid by tenants and owners alike, so they are left out. 3. Wealth when renting: the equity is invested, plus each month the amount by which the loan payment and maintenance exceed the rent (e.g. a 5% return from a broadly diversified ETF, before tax). 4. Wealth when buying: property value (appreciation about 1-3% p.a.) minus remaining debt. If the rent is higher than the buyer's costs – at the latest once the loan is repaid – the buyer invests the difference. 5. Compare after 10, 20 and 30 years: the break-even year shows from when buying is ahead. 6. Check the sensitivity: one percentage point more or less investment return shifts the result by many years.
Calculation Example
Purchase price 350,000 EUR in NRW: purchase costs 12.07% = 42,245 EUR (transfer tax 22,750 EUR, notary 5,250 EUR, land register 1,750 EUR, broker 12,495 EUR). With 70,000 EUR equity the loan is 322,245 EUR; the payment at 3.5% interest and 2% repayment is 1,476.96 EUR/month, plus 437.50 EUR maintenance (1.5%). The tenant pays 1,200 EUR cold rent (+2%/year) and invests 70,000 EUR plus initially 714.46 EUR a month at 5%. After 10 years: buyer wealth 181,437 EUR (value 426,648 EUR − remaining debt 245,211 EUR) versus the tenant's portfolio of 208,323 EUR. The loan is repaid after 29 years; after 30 years it is 662,231 EUR versus 640,191 EUR. Buying is ahead from year 23.
Sources
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.
Reviewed by Konstantin Iakovlev · Last updated:
Real Estate
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