How does this rent vs buy calculator work?

It computes the total cash cost of buying over your chosen horizon (upfront deposit and fees, mortgage payments, and PBB plus maintenance) minus the equity you build through repayment and appreciation. It compares that against total rent paid minus the investment return a renter earns by keeping the would-be deposit invested. The cheaper net figure wins.

What appreciation rate should I assume for Indonesia?

Long-run Indonesian residential prices have historically grown around 5% per year nationally, though prime areas in Jakarta, Surabaya, and Bali have at times grown faster and secondary markets slower. The default is 5% but you should adjust it for your specific city and property type, since the verdict is sensitive to this number.

Why does renting sometimes win even though I build no equity?

Renting frees up the deposit and transaction costs (BPHTB, notary) to be invested elsewhere. If those funds earn a solid return and you only stay a few years, the avoided transaction costs and invested gains can outweigh the equity a buyer would build. Buying tends to win the longer you hold.

What costs of buying does the model include?

It includes the deposit, transaction costs (roughly 7% for BPHTB plus notary and AJB), the full mortgage repayments over your horizon, and annual holding costs (PBB land-and-building tax plus maintenance). It credits you back the equity from principal repayment and appreciation at the end.

Is this calculator a substitute for financial advice?

No. It is a simplified planning model. Real outcomes depend on actual appreciation, your investment returns, how the KPR rate resets after the fixed period, and your personal circumstances. Use it to understand the trade-offs, then consult a qualified adviser before a major property decision.

Indonesia Rent vs Buy Calculator

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The Indonesia rent vs buy calculator models the full financial picture of renting versus buying a home with a KPR mortgage. It accounts for the costs unique to Indonesia — the 5% BPHTB transfer duty, PBB holding tax, commercial KPR rates — and the opportunity cost of keeping your deposit invested if you rent.

How it works

Buying and renting are each reduced to a single net cost over your time horizon.

Cost of buying = upfront deposit and transaction fees + total mortgage paid + total holding cost - equity retained at the end (principal repaid plus appreciation).

Cost of renting = total rent paid over the horizon - the investment gain a renter earns by keeping the would-be deposit and fees invested.

Whichever net cost is lower is the cheaper choice. The model grows rent with inflation each year and grows the home value with your appreciation assumption.

Worked example

Consider a Rp 900,000,000 home versus Rp 4,500,000/month rent over 10 years, with a 20% deposit, a 9.5% KPR over 15 years, 5% appreciation, 5% rent inflation, and a 6% investment return on the deposit. Over a full decade the equity built through repayment and appreciation usually tips the verdict toward buying — but shorten the horizon to three or four years and the heavy upfront BPHTB and notary costs often make renting cheaper.

Tips and notes

The verdict is most sensitive to the appreciation rate and your holding period. Try a few scenarios.
KPR teaser rates reset to a floating rate later; model the higher rate to be safe.
Transaction costs (BPHTB plus notary) are large and one-off, which is why short stays favour renting.
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