Rent vs Buy Calculator
Compare the real cost between buying a property and staying a tenant over a given period.
Learn more about this comparator▼
Why compare?
The question "should I buy or rent?" is one of the most important in personal finance. The answer depends on many factors: your financial situation, expected holding period, real estate market trends, and your savings capacity.
How does this calculator work?
Our comparator analyzes two scenarios over the period you define:
- 1.Buy Scenario: Calculate total cost (initial investment, loan, charges) minus the equity built.
- 2.Rent Scenario: Calculate rent paid minus the value of alternative investment of the down payment.
- 3.Comparison: Determine break-even point and personalized recommendation.
Key factors to consider
Holding period
Buying generally becomes more advantageous after 7-10 years. Below that, acquisition costs (notary, agency) weigh heavily.
Market evolution
Potential capital gains depend on property price trends in your geographic area.
Opportunity cost
The down payment invested in stocks or other investments could yield more than real estate.
Owner charges
Property tax, condo fees, maintenance... These costs add to the mortgage payment.
Tips for your decision
- •Don't rush: buying real estate is a long-term commitment.
- •Keep an emergency fund of at least 6 months of expenses.
- •Consider your professional and family stability.
- •Compare multiple scenarios with conservative and optimistic assumptions.
Frequently Asked Questions
After how many years does buying become profitable?▼
Generally, the break-even point is between 7 and 12 years depending on the market. Our calculator gives you the precise result for your situation.
Should notary fees be included in the calculation?▼
Yes, they represent 7-8% of the price in older properties. It's a non-recoverable cost that delays the break-even point.
What return to use for alternative investment?▼
For a fair comparison, use 4-5% (diversified life insurance) or 7% for a stock PEA with more risk.
Does the calculator account for inflation?▼
Yes, you can set rent evolution, property prices, and general inflation.
How is capital gains tax calculated?▼
Tax (19% + 17.2% social contributions) is calculated with allowances for holding period (exemption after 30 years).
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