How does the rent vs buy comparison work?

Buying costs are the upfront 2% transfer tax plus the lost investment return on your deposit, plus ongoing mortgage interest and holding costs, offset by the equity you build and the home's capital growth. Renting costs are the rent paid over the period while your deposit stays invested and grows. The tool nets these out over your horizon.

What is overdrachtsbelasting and is it included?

Overdrachtsbelasting is the Dutch property transfer tax, normally 2% of the purchase price for an owner-occupied home (first-time buyers under 35 buying below the cap can be exempt). The calculator charges it as an upfront cost of buying, which is why buying usually needs a few years of growth to break even.

Does the model include Dutch mortgage interest deduction?

It models interest as a cost without the hypotheekrenteaftrek deduction, so it is deliberately conservative. If you can deduct interest your effective cost of buying is lower than shown, tilting the result further toward buying.

What costs does buying include here?

The 2% transfer tax, mortgage interest over the period, and annual holding costs such as VvE service charges, insurance, maintenance and gemeentelijke belastingen entered as a percentage of value. Principal repayments are not counted as a loss because they convert cash into equity you keep.

Are these figures financial advice?

No. This is a simplified model to compare scenarios. It ignores income-tax effects, notary and valuation fees, NHG, and your personal circumstances. Treat it as a starting point, not advice.

Netherlands Rent vs Buy Calculator

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A Netherlands rent vs buy calculator that compares the two paths over a horizon you choose — typically 10 years — so you can see which leaves you financially better off rather than guessing. Crucially, it accounts for the thing most casual comparisons miss: the opportunity cost of your deposit, the return that money could earn if you rented and invested it instead.

How it works

The model nets out the real cost of each path over your horizon.

Buying costs:

upfront   = 2% transfer tax + deposit (which stops earning investment returns)
ongoing   = mortgage interest + holding costs (VvE, insurance, taxes, upkeep)
benefit   = capital growth on the property + equity built from repayments
netBuy    = upfront + ongoing - benefit (the deposit is recovered as equity at the end)

Renting costs:

netRent   = total rent paid (growing with rent inflation)
            - investment growth earned on the deposit kept invested

Whichever net cost is lower is the cheaper path over that period. Because the 2% transfer tax is an upfront hit, buying usually needs several years of house-price growth to pull ahead — which is exactly what the horizon slider exposes.

Example and notes

Buy a 425,000 EUR home with an 85,000 EUR deposit at 4.2%, versus renting an equivalent home at 1,600 EUR/month. With 3% house-price growth, 4% rent inflation and a 6% return on invested savings, buying often wins by year 6–10 but renting can win over shorter periods.

This is a simplified comparison: it ignores the mortgage interest deduction, notary fees, NHG and your tax position. All figures are computed locally in your browser and are not financial advice.