Rent vs Buy Calculator
Compare the net cost of buying a home with a mortgage versus renting over the same period, taking into account costs, appreciation and rent increases.
Results
Net cost of buying
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Net cost of renting
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Difference (buy - rent)
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Indicative recommendation
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Monthly mortgage payment
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Estimated home value at the end of the period
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Outstanding debt at the end of the period
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Net cost of buying = down payment + purchase costs + payments made − (estimated home value − remaining debt) at the end of the horizon. Net cost of renting = sum of monthly rents, increased yearly, over the same period.
When should you use this calculator?
This calculator compares the net cost of buying a home with a mortgage versus renting an equivalent home over the same number of years, considering the down payment, purchase costs, mortgage payments, estimated property appreciation and rent evolution.
Legal context in Spain
Buying a home in Spain involves, in addition to the purchase price, extra costs of roughly 10% to 12%: Transfer Tax (ITP) or VAT plus Stamp Duty (AJD) depending on whether it is a resale or new-build property, notary, land registry and gestoría fees.
Renting offers more flexibility and less financial commitment in the short term, but does not build equity. Buying involves a larger upfront outlay and less mobility, but allows you to build equity through loan repayment and potential property appreciation.
This calculator is an indicative simplification: it does not account for the opportunity cost of investing the down payment and purchase costs elsewhere if you choose to rent, nor tax deductions for primary residence or rent that may exist in certain regions. Use it only as a reference and consult a financial advisor for important decisions.
Frequently asked questions
What costs does buying a home in Spain involve besides the price?
Roughly an extra 10% to 12% of the price: Transfer Tax (resale) or VAT plus Stamp Duty (new-build), notary, land registry and gestoría fees, plus the appraisal if applying for a mortgage.
How much down payment do I need to buy a home?
Banks usually finance up to 80% of the appraisal value, so you need at least a 20% down payment plus 10-12% in costs, roughly 30-32% of the property price in savings.
What are the pros and cons of renting versus buying?
Renting offers flexibility, lower financial commitment and no exposure to property price fluctuations, but does not build equity. Buying builds equity and protects you from future rent increases, but involves a high upfront cost and less mobility.
How does home appreciation affect the decision to buy or rent?
The higher the expected home appreciation, the more favourable buying becomes over the long term, since the net equity generated (home value minus remaining debt) offsets the initial costs and payments made.