Rent or buy a home

Compare renting and investing the difference with buying and later selling.

10,0001,000,000
0500,000
010,000
130
Show detailed assumptions

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What the figures mean

Cash flow

Money received less money paid during a period. It can differ from accounting profit; investment outlays are negative and receipts positive.

Simple example: €1,000 received less €700 paid gives a cash flow of +€300.

Owners’ equity

In company accounts, assets less liabilities. In a property investment, your initial equity is your own money; the estimated value of your stake can differ from that amount.

Simple example: Company assets of €100,000 less €60,000 liabilities leave €40,000 of book equity.

How we calculate

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