Rent vs buy calculator
Same money, two paths: buy with a mortgage, or rent and invest the down payment and the difference. Which leaves you with more, years later?
Results are a scenario based on the assumptions you enter, not a certain result or investment advice. The calculation runs in your browser; your numbers are not sent anywhere.
| Year | If you buy | If you rent |
|---|---|---|
| 1 | ₺2,452,603 | ₺2,579,742 |
| 2 | ₺4,083,348 | ₺4,129,647 |
| 3 | ₺6,206,491 | ₺6,091,412 |
| 4 | ₺8,970,849 | ₺8,563,476 |
| 5 | ₺12,570,259 | ₺11,662,730 |
| 6 | ₺17,476,520 | ₺15,744,686 |
| 7 | ₺24,309,826 | ₺21,255,325 |
| 8 | ₺33,829,236 | ₺28,694,689 |
| 9 | ₺47,092,432 | ₺38,737,831 |
| 10 | ₺65,572,770 | ₺52,296,071 |
How is it calculated?
Picture two people with the same money today. One pays the down payment and purchase costs with it and borrows the rest on a mortgage. The other keeps renting and invests the same money at the yearly return assumption.
Each month, whoever pays less invests the difference: if the mortgage payment is above the rent, the renter invests the difference; if the rent is higher, the owner does. Rent rises once a year; once the mortgage is paid off, the owner’s payment drops to zero.
In the end, the owner’s wealth is the home’s estimated value − the loan left + their savings. The renter’s wealth is their invested savings. Purchase costs are money the owner doesn’t get back.
Service charges, maintenance, property tax, insurance and moving are left out. The result is most sensitive to the gap between house price growth and the return on savings; try a few assumptions.
Frequently asked questions
Is it better to rent or to buy with a mortgage?
There’s no single answer. If house prices grow faster than your savings and rent is high, buying pulls ahead; if mortgage rates are high and rent is low, renting and investing can win. The calculator shows that balance with your numbers.
What is the price-to-rent ratio?
The home price divided by the yearly rent. If a ₺4,000,000 home rents for ₺20,000 a month, yearly rent is ₺240,000 and the ratio is about 17 years. The higher the ratio, the cheaper renting is relative to buying.
What if the mortgage payment is lower than the rent?
Then the owner invests the difference. Each month the calculator checks which side pays less and adds the difference to that side’s savings.
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