How does this rent vs buy calculator work?

It tallies every cash flow on each side. Buying counts the down payment, deed tax, mortgage payments and maintenance, then subtracts what you recover when you sell (value minus the remaining loan and any resale VAT). Renting counts the growing rent you pay, minus the investment growth you earn on the cash you did not tie up in a deposit. The smaller net cost wins.

Why include investment return on the deposit?

If you rent, the large down payment and deed tax stay in your pocket and can be invested. Ignoring that return overstates the case for buying. The tool grows that freed-up cash at your chosen rate so the comparison is fair.

Does it account for China's resale VAT?

Yes. If you sell within 5 years of buying, an ordinary home incurs 5% VAT on the sale price, which the model deducts from your sale proceeds. Holding 5 years or more removes that cost, which is why buying often looks better over longer horizons.

What appreciation rate should I use?

Use a conservative figure. Chinese house-price growth has varied sharply by city and cooled markedly in recent years, with some markets flat or falling. Try 0%–3% and re-run the model to see how sensitive the result is to your assumption.

Does this calculator store my data?

No. All figures are computed locally in your browser and nothing is uploaded, so you can plan privately.

China Rent vs Buy Calculator

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This China rent vs buy calculator answers the question every Chinese household faces — is it cheaper to rent or to buy over the years I actually plan to stay? It models the full financial picture, not just the monthly payment, so a fair comparison emerges.

How it works

On the buy side the tool adds up every outflow: the down payment, deed tax (modelled at 1.5% for an ordinary home), the mortgage payments using the standard amortising formula, and annual maintenance and management fees. It then projects the home’s value at your sale date using your appreciation rate, subtracts the remaining loan balance and any resale VAT (5% if you sell within 5 years), and treats the equity you recover as money back. The net cost of buying is everything paid out minus what you get back at sale.

On the rent side it sums the rent you pay over the horizon, growing each year, then subtracts the investment growth on the cash you would otherwise have sunk into the deposit and deed tax. The side with the lower net cost wins.

Example

Buying a CNY 2,000,000 home with 20% down at 4.2% over 20 years, held 10 years with 2% appreciation, is compared against CNY 5,000/month rent rising 3% a year while the freed-up deposit earns 4%. The calculator nets out sale proceeds and investment growth and shows which path costs less, and by how much.

Notes

The result is highly sensitive to two guesses: price appreciation and your investment return. Run several scenarios. In cooling markets a low or negative appreciation rate can flip the answer toward renting. This is an estimate for planning, not financial advice.