Rent vs Buy Calculator
Compare estimated costs of buying and renting over a period you choose. Results depend on your assumptions for rent, home costs, price changes and investment returns.
With the current inputs, estimated monthly ownership costs are NOK 3 031,57 and starting rent is NOK 2 200,00. These are editable scenario assumptions, not a market average or financial recommendation.
NOK 48 000,57
Buying generates higher estimated net worth after home equity and any invested monthly savings are combined.
NOK 274 196,09
Equity after sale costs plus investmentsNOK 226 195,52
Invested portfolioNOK 3 031,57
P&I, tax, insurance, PMI, HOA & upkeepNOK 2 200,00
Year 1 monthly rentCalculation is instantly saved in this shareable URL.
🗄️ Saved Comparison Scenarios (Side-by-Side)
Net Worth Trajectory Over Time
Year-by-Year Financial Progression
Tracking home appreciation, declining mortgage balance, buyer equity, and renter investment compounding.
| Year | Property Value | Mortgage Debt | Buyer Net Worth | Renter Net Worth | Net Advantage |
|---|---|---|---|---|---|
| Yr 1 | NOK 463 500,00 | NOK 375 941,61 | NOK 59 748,39 | NOK 91 291,20 | NOK −31 542,81 |
| Yr 2 | NOK 477 405,00 | NOK 368 961,39 | NOK 79 799,31 | NOK 106 180,55 | NOK −26 381,24 |
| Yr 3 | NOK 491 727,15 | NOK 361 532,18 | NOK 100 691,34 | NOK 121 149,66 | NOK −20 458,32 |
| Yr 4 | NOK 506 478,96 | NOK 353 625,11 | NOK 122 465,12 | NOK 136 178,31 | NOK −13 713,20 |
| Yr 5 | NOK 521 673,33 | NOK 345 209,43 | NOK 145 163,50 | NOK 151 244,25 | NOK −6 080,75 |
| Yr 6 | NOK 537 323,53 | NOK 336 252,44 | NOK 168 831,68 | NOK 166 323,10 | +NOK 2 508,58 |
| Yr 7 | NOK 553 443,24 | NOK 326 719,32 | NOK 193 517,33 | NOK 181 388,16 | +NOK 12 129,17 |
| Yr 8 | NOK 570 046,54 | NOK 316 573,01 | NOK 219 270,73 | NOK 196 410,26 | +NOK 22 860,47 |
| Yr 9 | NOK 587 147,93 | NOK 305 774,08 | NOK 246 144,98 | NOK 211 357,60 | +NOK 34 787,38 |
| Yr 10 | NOK 604 762,37 | NOK 294 280,54 | NOK 274 196,09 | NOK 226 195,52 | +NOK 48 000,57 |
How this rent-versus-buy calculator compares costs
The estimate compares home equity after projected appreciation, remaining mortgage balance and selling costs with the renter's invested upfront cash. Each month, the scenario with lower housing costs can invest the difference. Mortgage payments use a fixed-rate amortization formula; future home values, rent, costs and investment returns are assumptions you can change.
Country-specific costs and tax treatment
Local taxes, insurance, mortgage rules, and transaction costs vary. Enter the costs that apply to your home and verify current rules with a local authority or lender. Investment returns and home-price changes are not guaranteed.
Calculation Methodology & Proof
Rent vs buy
Both paths start with the same cash. The buyer puts it into the house; the renter invests it. Each year we compare net worth.
- Buyer cash outlay: down payment + buy closing, then PITI + maintenance each month.
- A simplified tax deduction reduces buyer cost by interest × marginal rate.
- Renter pays rent (growing) and renter insurance, and keeps the invested stake growing.
- Break-even is the first year buyer net worth exceeds renter net worth.
Important Caveats & Planning Assumptions
- Appreciation, returns, and rent growth are assumptions, not forecasts.
- Transaction costs and taxes on sale are stylized.
Frequently Asked Questions
Expert answers to common questions
Why can renting win on paper?
If the down payment would earn a high return, if you move before break-even, or if buy costs (tax, maintenance, selling costs) are high relative to rent.
Do you include the mortgage interest deduction?
A simplified deduction using your marginal tax rate is applied to interest. Caps, standard-deduction effects, and local tax treatment are not fully modelled.
What is 'advantage'?
Buyer net worth (home equity after selling costs) minus renter net worth (invested cash). Positive means buying is ahead in that year.