How does the rent vs buy comparison work?

Buying costs you the upfront transfer tax plus mortgage interest and owner costs, but you build equity through amortisation and appreciation. Renting costs you rent, but your deposit and transfer-tax money stays invested and grows. The tool nets these off over your horizon.

Does it include Danish transfer taxes?

Yes. The buy scenario adds the upfront tinglysningsafgift — 0.6% of the price for the title deed plus 1.45% of the loan for the mortgage, with the fixed fees — so the comparison reflects real Danish acquisition costs.

Is the gain on selling my home taxed?

Usually not. Gains on an owner-occupied home in Denmark are normally tax-free under the parcelhusreglen, so the tool models no exit capital gains tax. Investment property is treated differently.

What makes buying win or lose?

Appreciation and your investment return are the biggest levers. High appreciation favours buying; a high return on invested capital and fast rent that stays low favour renting. Test several scenarios rather than trusting one set of assumptions.

Is my data sent anywhere?

No. Everything is computed in your browser and nothing you enter is stored or uploaded.

Denmark Rent vs Buy Calculator

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This Denmark rent vs buy calculator compares the true cost of renting against buying a Danish home over the horizon you choose. It weighs mortgage interest, the tinglysningsafgift, running owner costs and appreciation against the rent you would pay and the growth on the deposit you would otherwise invest.

How it works

The model runs two scenarios over your chosen number of years:

Buy: you pay the upfront transfer tax (0.6% of price + 1.45% of the loan + fixed fees), then each month interest on the declining balance plus owner costs (which include the property value tax). Amortisation and appreciation build equity. The net cost is money spent minus equity gained.
Rent: you pay rent that grows each year, while your deposit and transfer-tax money stays invested at your assumed return. The net cost is rent paid minus investment growth.

Whichever net cost is lower wins. Because an owner-occupied sale is normally tax-free under the parcelhusreglen, no exit capital gains tax is deducted.

Example

Buy a DKK 3,500,000 home with a DKK 350,000 deposit at 4% over a 10-year horizon, versus renting at DKK 12,000/month. With 2% appreciation and a 5% investment return, the tool nets the interest and owner costs against the equity you build and the rent you avoid, then reports which path costs less.

Notes

The result is sensitive to the appreciation and investment-return assumptions — small changes can flip the winner. Treat it as a structured comparison, not a forecast, and run a few scenarios before deciding.