kr.1.33M
Equity net of selling costs
Rent vs. Buy Calculator
Compare buying a home with renting and investing the difference. The model includes mortgage costs, ownership costs, home equity, down payment opportunity cost, and the renter's investment portfolio.
Buying
Home price, mortgage, and ownership costs
30 years
Annual ownership cost. If unsure, use a broad estimate rather than leaving this at zero.
Agent fees and closing costs at exit.
Optional. Leave as “Not itemizing” or equivalent if this does not apply in your country or tax situation.
Renting
Monthly rent and escalation assumptions
Shared Assumptions
Time horizon, investment return, and inflation
10 years
How many years you plan to stay or compare over.What the renter earns on invested savings.
Net Wealth Outcome After 10 Years
Renting builds kr.364,781 more wealth
Under these assumptions, renting and investing the difference leaves the renter ahead after 10 years.
Buying does not pull ahead within 40 years under these assumptionskr.1.69M
Portfolio value
Never (40yr)
When buying pulls ahead
kr.15,116/mo
All-in year 1
kr.11,167/mo
All-in year 1
kr.3.31M
Appreciated value
Net Wealth Over Time
Buyer equity net of selling costs versus the renter portfolio built from the down payment and invested monthly savings.
Monthly Costs - Buying
Year 1Principal & Interestkr.9,483
Property Taxkr.2,750
Home Insurancekr.383
Maintenance / owner association feeskr.2,500
Total Monthlykr.15,116
Monthly Costs - Renting
Year 1Monthly Rentkr.11,000
Renter's Insurancekr.167
Total Monthlykr.11,167
Opportunity Cost of the Down Payment
The down payment is not free. This shows what that capital and the monthly savings gap could be worth if invested instead.
Down Payment InvestedIf the down payment were invested at the assumed return rate instead of used to purchase.
kr.1.21MMonthly Savings Invested (Rent vs. Buy Cost Diff.)If the renter invests the monthly cost difference each month.
kr.484,464Total Renter PortfolioCombined invested down payment plus monthly savings.
kr.1.69MBuyer Equity (Net of Selling Costs)Home value minus mortgage balance minus selling costs.
kr.1.33MYear-by-Year Milestone Table
Key checkpoints showing net worth for both paths and the running gap between them.
Year 1
- Buyer Net Worth
- kr.502,616
- Renter Net Worth
- kr.692,319
- Difference
- -kr.189,704
- Home Value
- kr.3.03M
- Mortgage Balance
- kr.2.35M
Year 3
- Buyer Net Worth
- kr.672,858
- Renter Net Worth
- kr.886,907
- Difference
- -kr.214,048
- Home Value
- kr.3.09M
- Mortgage Balance
- kr.2.23M
Year 5
- Buyer Net Worth
- kr.850,039
- Renter Net Worth
- kr.1.1M
- Difference
- -kr.245,769
- Home Value
- kr.3.15M
- Mortgage Balance
- kr.2.11M
Year 10
- Buyer Net Worth
- kr.1.33M
- Renter Net Worth
- kr.1.69M
- Difference
- -kr.364,781
- Home Value
- kr.3.31M
- Mortgage Balance
- kr.1.79M
| Year | Buyer Net Worth | Renter Net Worth | Difference | Home Value | Mortgage Balance |
|---|---|---|---|---|---|
| Year 1 | kr.502,616 | kr.692,319 | -kr.189,704 | kr.3.03M | kr.2.35M |
| Year 3 | kr.672,858 | kr.886,907 | -kr.214,048 | kr.3.09M | kr.2.23M |
| Year 5 | kr.850,039 | kr.1.1M | -kr.245,769 | kr.3.15M | kr.2.11M |
| Year 10 | kr.1.33M | kr.1.69M | -kr.364,781 | kr.3.31M | kr.1.79M |
Key planning insight
Buying costs kr.3,950 more per month in year 1. That gap, invested consistently, is worth kr.484,464 after 10 years. The crossover year - when buying's equity buildup overtakes the renter's invested portfolio - is beyond the 40-year model horizon under current assumptions. Results are shown in nominal money.
Want to understand the math?
How to interpret this result
Understand how buying and renting compare as modeled wealth paths, and which assumptions can change the outcome.
This calculator compares two wealth paths:
- Buying — building home equity while paying mortgage and ownership costs.
- Renting — paying rent while investing the down payment and any monthly cost difference.
The result is not saying that one lifestyle is better. It shows which path produces higher modeled net worth under the assumptions above.
What to watch
Time horizon
Buying often looks worse over short periods because transaction costs and selling costs have less time to spread out. Longer stays can give equity and appreciation more time to matter.
Down payment opportunity cost
A down payment is not free. If you buy, that capital goes into the home. If you rent, the model assumes that money is invested instead.
Monthly cost difference
The comparison depends heavily on what happens to the monthly difference between buying and renting. If the renter does not invest the difference, the renting path will usually look too optimistic.
Home appreciation
A small change in appreciation can move the result significantly. Test conservative assumptions, especially if prices have recently risen quickly.
Maintenance and ownership costs
Maintenance, insurance, taxes, and selling costs can change the result more than expected. Leaving these too low can make buying look artificially strong.
A simple way to use this calculator
Run three versions:
- baseline home appreciation and investment return
- lower home appreciation
- higher maintenance or ownership costs
Then change the time horizon. Rent vs. buy decisions often reverse when the holding period changes.
Related reading
Methodology
Want the formulas and assumptions?
FAQ
Is buying always better than renting?
No. Buying can build wealth, but it also has transaction costs, maintenance costs, and opportunity cost. The result depends on assumptions and time horizon.
Why does the renter invest the down payment?
Because the down payment is capital. A fair comparison asks what that money could do if it were not used to buy the home.
What is the crossover year?
It is the first year when the buying path overtakes the renting path in modeled net worth.
Should I trust the exact winner?
Treat it as a planning signal, not a verdict. Small changes in appreciation, rent growth, maintenance, or investment return can change the answer.
Does this calculator include lifestyle factors?
No. Stability, flexibility, moving plans, schools, commute, and personal preference are outside the model.
What should I test first?
Change the time horizon, home appreciation, maintenance costs, and investment return. Those usually move the result most.