This Norway rent vs buy calculator runs a month-by-month simulation of both paths and tells you which costs less over your chosen horizon. It uses Norwegian inputs — local mortgage rates, the 2.5% document tax (dokumentavgift), holding costs, and the return on investing your deposit if you rent.
How it works
Two paths are simulated over your horizon:
- Buy: pay the deposit and the 2.5% document tax upfront. Each month pay mortgage interest and principal plus holding costs, while the home grows at the capital-growth rate. End wealth is the home value minus the remaining loan. The net cost of buying is the total cash out minus the equity you recover.
- Rent: keep the deposit and the document-tax money invested at your chosen return. Pay rent each month, rising at rent inflation. End wealth is the invested portfolio; the net cost of renting is total rent minus the investment gain.
The path with the lower net cost wins.
Example
Buying a 4,000,000 kr home with an 800,000 kr deposit at 5.5% over a 10-year horizon, against a 16,000 kr/month rent, with 4% growth and a 7% investment return, will typically favour buying once price growth and equity build-up outweigh the 100,000 kr document tax and holding costs — but the result flips if growth is low or you move within a few years.
Notes
This is a simplified model. It ignores estate-agent fees on a future sale, capital gains tax (a Norwegian primary residence is usually exempt after the ownership and occupancy test), and your personal tax position. It is not financial advice — use it to understand the trade-offs, then confirm with an adviser.