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Buy vs Rent Calculator

Compare the monthly cost of buying a home with a mortgage versus renting, including owner expenses.

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๐Ÿ‡ฉ๐Ÿ‡ฐ All calculations are based on Danish rules, rates, and currency (DKK). This calculator is translated for convenience but applies exclusively to Denmark.

Buy vs Rent โ€” Housing Cost Comparison

One of the biggest financial decisions you will make is whether to buy or rent your home. This calculator compares the monthly cost of owning a property โ€” including mortgage payments and owner expenses โ€” with the cost of renting. It helps you see at a glance which option is cheaper on a month-to-month basis and how much you would spend over a 10-year period.

How the Comparison Works

The buying cost is calculated using a standard 30-year annuity mortgage at the interest rate you specify, plus fixed monthly owner expenses such as property tax, insurance and maintenance. The renting cost is simply the monthly rent multiplied over the same period. The difference is shown both monthly and over 10 years to give you a long-term perspective.

Beyond the Numbers

Cost is only one factor. Owning builds equity and offers stability, while renting provides flexibility and lower upfront costs. In Denmark, renters also benefit from strong tenant protection laws. Consider your personal circumstances, job stability and local market conditions alongside these numbers before making your decision.

Frequently Asked Questions

Is it cheaper to own than rent?

In more and more municipalities, it has become more expensive to own than to rent. Over recent years, it has become relatively more expensive to be a homeowner compared to renting. This means that there are now more municipalities where the costs of owning are higher than the costs of renting.

What are the advantages of renting?

Advantages of renting: You have a great degree of flexibility since you are not financially bound in the same way. You do not have to handle maintenance yourself as it is the landlord's responsibility. There are no extra costs associated with living in a rental. You have the opportunity to try different cities or areas.

Is it worth buying a house and renting it out?

Property investment for rental is a popular strategy for many private investors. It can be an effective way to generate passive income while building long-term value and security in your investments.

What is the 40% rule?

Fixed base deduction ('the 40% rule'): This means that after the base deduction is subtracted from your rental income, you can deduct an additional 40% from the remaining rental income (rent plus tenants' payment for electricity, oil, telephone, etc.).

Is it worth being debt-free in your home?

A debt-free home can provide peace, security and predictability. The advantages of being debt-free are easy to see. When the debt disappears, the interest rate risk also disappears. You no longer need to worry about where variable rates are heading or how future rate increases will affect the budget.

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