Rent or buy: scenarios with open assumptions
There is no right time to buy for every household. Compare how your own assumptions change wealth in two simplified housing scenarios.
Calculate rent-or-buy scenario
Adjustable assumptions, not bank offers or forecasts. Both options use the same monthly budget; the cheaper option invests the difference. Taxes and sale costs are not included. Inputs remain in your browser.
Other assumptions: value, return on investment and rent
Current: property value 0 %, return on capital 0 %, rent excluding service charges 0 % per year. 0% is an assumption, not a forecast.
Comparison over your chosen time horizon
Our own calculation based on your inputs and the stated assumptions.
- Difference buying minus renting
- 3.876,06 €
- Modelled wealth: buying
- 131.876,06 €
- Modelled wealth: renting
- 128.000,00 €
- Buy
- 131.876 €
- Rent
- 128.000 €
Bars show the amounts of your entries in relation to each other. Negative values are marked with minus signs.
A positive difference favours buying in this calculation only under these assumptions; a negative difference favours renting. Property wealth is not a liquid cash payout. Annual assumptions: change in property value 0%, return on capital 0%, change in rent 0%. Taxes, sale costs and refinancing are not accounted for on an individual basis.
Calculation method and other values
- Initial loan amount
- 250.000,00 €
- Outstanding loan balance at the end
- 168.123,94 €
- Loan interest paid
- 74.123,94 €
- Assumed property value at the end
- 300.000,00 €
- Capital assets in the purchase scenario
- 0,00 €
Comparison calculated. Results are shown in the Comparison over your chosen time horizon section.
Two variants under the same budget
Both scenarios start with the equity you enter. In the purchase scenario, it covers the purchase price and additional costs as far as possible; the remainder becomes the model loan. Surplus capital stays invested. In the rental scenario, the equity stays invested. Each month the model applies the same budget to both options: the larger amount from basic rent and loan instalments plus ownership costs. The cheaper option invests the difference. Repayment is therefore not counted both as a lost expense and as growth in wealth.
Calculate credit, remaining debt and assets separately
At the start of each month, model interest equals outstanding debt × annual loan interest rate ÷ 1,200. The payment covers interest and principal; the final payment is capped at the remaining balance plus that month’s interest. No loan payments remain after repayment. The initial payment must exceed initial monthly interest. At the end, the buying scenario shows assumed property value minus debt plus invested capital; the renting scenario shows invested capital. This is a scenario, not a recommendation to buy.
Calculation example without interest or change in value
Assume €120,000 purchase price, €0 additional costs, €20,000 equity, 0% loan interest, €1,000 monthly installment and €1,000 basic rent. Excluding ownership costs, returns and changes in value, the remaining debt is €88,000 after one year. In the example, the property value remains €120,000; the model assets when buying are €32,000. When renting, the starting capital remains €20,000. This artificially simplified calculation explains the repayment, not the Düsseldorf market and not the achievable financing.
Change in value and return on investment are your hypotheses
Property value, capital investment and basic rent can each rise or fall. The model converts your annual change with the monthly factor (1 + annual change ÷100) to the power of 1/12. Default values are example assumptions; 0 % is not a forecast. Compare at least one less favorable and one more favorable scenario. A calculated advantage can change through a different return on investment, different costs or a shorter period of time. There is no guaranteed threshold above which buying would always be cheaper.
The important limits of comparison
The model uses a constant borrowing interest rate and a constant loan instalment. It does not individually calculate refinancing, personal taxes, subsidies, different investment fees, case-specific purchase or sale taxes, or later selling costs. Ownership costs stay constant at your annual input. The property value is a model value before possible selling expenses, not cash available for withdrawal. Operating costs common to both housing options are not calculated separately. Differences in housing quality, flexibility and personal risks cannot be expressed as a euro metric.
Collect reliable input before making a decision
Compare similar apartments using actual contractual rent, owners’ association records or ownership costs, and a real financing offer. Deduct reserves from usable equity beforehand; the equity calculator can help. Check affordability against your own circumstances. A positive difference in the wealth model does not replace a household budget or legal, tax or bank assessment.
Related tools and background information
Data sources
Official source · Our own calculation · Our own analysis · DDORF estimate → Methodology
- Our own calculationOur own calculationOur own calculation based on your inputs and the stated assumptions; not a forecast.View source