Buy vs Rent Calculator Ireland
Compare the financial cost of buying vs renting over a multi-year horizon. The calculator weighs the cost of mortgage, maintenance, and LPT against rent inflation and the opportunity cost of investing your deposit. Useful as a directional sanity check — not a substitute for a tax-aware NPV.
How is this calculated?
For each year of the horizon: the buy path tracks cumulative mortgage repayments + maintenance + LPT, offset by built-up equity (principal paid + appreciation + deposit). The rent path tracks cumulative rent (compounding by your inflation assumption), offset by the deposit invested at your stated rate. The break-even year is the first year where buying becomes cheaper than renting on a net-cost basis. Significant simplifications: linear principal paydown (real amortisation is slower in early years), excludes stamp duty and transaction costs, excludes mortgage interest tax relief.
Frequently Asked Questions
Is it cheaper to buy or rent in Ireland?
It depends on your horizon, rent level, mortgage rate, and assumptions about home appreciation and rent inflation. Generally, buying becomes cheaper the longer you hold (typically 7+ years) because transaction costs amortise and equity builds. Short horizons (under 5 years) usually favour renting because you don't recoup buying costs.
What's the break-even year?
The break-even year is the first year in which the cumulative net cost of buying drops below the cumulative net cost of renting. Below that horizon, renting is cheaper; above it, buying is cheaper. Sensitivity to assumptions matters — small changes in rent inflation or appreciation can shift the break-even by several years.
Does this calculator include stamp duty?
No — stamp duty and other one-off transaction costs (solicitor, surveyor, mortgage broker) are excluded for clarity. They typically add 2–4% to the cost of buying. For a realistic comparison, mentally add these to the buy side, especially over short horizons.
What investment return should I use for the rent path?
If you'd genuinely invest the deposit in a diversified equity index, 5–7% nominal long-run returns are reasonable. If the alternative is leaving it in a deposit account, use 1–3%. The investment return is one of the most sensitive inputs — try a few values to see how the comparison changes.
Why do appreciation and rent inflation matter so much?
Both compound. A 3% rent inflation over 20 years means the year-20 rent is ~80% higher than the year-1 rent. A 3% home appreciation over 20 years roughly doubles the home value. Small changes in these inputs swing the comparison by tens of thousands of euro.
Last updated: May 2026 · Rates sourced from Revenue