Rent vs buy calculator
Renting costs less on day one and buying usually wins in the end. This works out where the crossover falls for your numbers, over the whole mortgage term.
Rent vs buy comparison
See which costs less over the term, and the year buying pulls ahead.
Service charges and upkeep. Defaults to 1.5% of the price a year — an estimate, not a quote, so replace it with your building’s real figure.
Monthly cost
- Renting
- AED 11,667
- Buying
- AED 6,695
| Rent | Buy | |
|---|---|---|
| Upfront | AED 7,000 | AED 333,620 |
| Paid over the term | AED 3,500,000 | AED 1,884,007 |
| Sale proceeds after repaying the loan | — | AED 1,174,800 |
| Net cost over 25 years | AED 3,507,000 | AED 1,042,827 |
Saved by buying
AED 2,464,173
Estimates only, for guidance. Growth rates are assumptions, not forecasts, and small changes to them move the answer a long way.
Common questions
After how many years does buying beat renting?
It depends far more on the annual cost of owning and on price growth than on the mortgage rate. On this calculator’s defaults buying pulls ahead in year two, but raising the service charge or assuming a falling market pushes that out by years. The year shown is the first from which buying stays ahead for the rest of the term.
Why does selling early cost so much more?
Because the outstanding mortgage is repaid out of the sale proceeds. Sell in year two of a 25-year loan and almost the whole sale price goes to the bank, so very little reaches you — while the transaction costs were paid in full on day one and cannot be recovered.