Question 1

Is buying always cheaper than renting?

Accepted Answer

No. Whether buying or renting is cheaper depends on many factors: purchase price, mortgage rate, rent, home appreciation, and your investment return. In a market with high prices and low rents, renting + investing can be cheaper. This tool shows you exactly when the break-even point is.

Question 2

What if house prices drop?

Accepted Answer

If you set home appreciation to 0% or negative, you'll see that renting + investing becomes advantageous much faster. With a 1% annual decline, it can take years before a buyer breaks even again. The risk of price drops is an important argument for renting.

Question 3

How does mortgage interest deduction affect my choice?

Accepted Answer

Mortgage interest deduction makes buying cheaper, especially in the early years when you pay a lot of interest. But the benefit decreases every year. With a 30-year annuity mortgage, the tax benefit in year 20 is only a fraction of year 1. This tool calculates this per year.

Question 4

What is the effect of Box 3 on renting + investing?

Accepted Answer

As a renter, you invest your down payment and the difference in monthly costs. On this wealth you pay Box 3 tax: the tax authority assumes 6% fictional return and levies 36% on that. This lowers your net return. The tool calculates this tax every year.

Question 5

Which costs are not included?

Accepted Answer

This calculation is simplified. Not included: transfer tax and notary fees at purchase, broker fees at sale, insurance (building, contents), possible HOA fees, and inflation on your income. The mortgage interest deduction is calculated as if your situation remains the same.

Rent vs Buy Calculator 2026

Property & mortgage

Rent + invest

Tax

Wealth accumulation over time

Frequently asked questions

Want the full picture?