How this works
Buying has big up-front costs (down payment, IMT, stamp duty) that renting does not, but over time amortisation and appreciation make up for it. This tool puts both paths on the same ruler: for the horizon you set, it computes the net cost of buying (what you pay minus the capital you recover and the appreciation) and of renting (rent plus the advanced deposit), and tells you the year the balance flips. It does not predict the future — it makes your assumptions explicit.
- 1
Enter the home and the loan
Price, down payment, loan term and the rate (Euribor + spread). The monthly instalment comes from the standard amortisation formula — level capital-and-interest.
- 2
Set the renting side
Monthly rent and deposit. Rent is multiplied by the months in the horizon; the deposit counts as a recoverable advance.
- 3
Pick the assumptions
Horizon in years, estimated annual appreciation and yearly upkeep. All editable — these are the numbers that move the result.
- 4
Read the verdict and break-even
I show each path’s net cost over the horizon and the year buying starts to pay off. Check the worked formula underneath.
Frequently asked
What counts as the "net cost" of buying?
Everything that leaves your pocket minus what you recover at the end. I add the instalments paid over the horizon, IMT, Stamp Duty (0.8%) and yearly upkeep; then I subtract the capital you have paid down (it is yours again) and the estimated appreciation. The down payment is not a cost: it becomes equity from day one and you get it back on sale — just like the rental deposit. What is left is the real cost of having bought.
And the cost of renting?
Rent × the number of months over the horizon, plus the deposit paid up front. The deposit is normally returned at the end of the contract, so it counts as an advance you get back, not as a sunk cost.
What is the "break-even"?
The number of years after which buying becomes cheaper than renting, given your assumptions. In the early years the entry costs (down payment, IMT, stamp duty) dominate and renting tends to win. The longer you stay, the more amortisation and appreciation tip the balance toward buying.
Is the appreciation guaranteed?
No. Annual appreciation is an estimate you pick — set it to 0% to be conservative, or negative if you think prices will fall. The same goes for Euribor: I leave it editable because it shifts over the life of the loan. Nobody knows the future; this tool just makes your assumptions explicit.
Why might the IMT here differ from the IMT calculator?
Here IMT is estimated from the price (assuming price ≥ VPT) and the purpose you pick. The dedicated IMT calculator lets you enter the VPT separately and covers more cases (rural land, youth schemes, etc.). For the precise figure, use that one — it is linked below.
Rent and Euribor rise over time — is that in the maths?
The instalment uses the Euribor + spread you enter, held fixed over the horizon (an honest approximation, not a simulation of resets). Rent is also treated as flat. If you expect sharp rises, run it twice — optimistic and pessimistic — and compare the break-even years.
DISCLAIMER
An estimate to help you think, not a financial recommendation. The instalment assumes a fixed Euribor + spread over the horizon and does not simulate rate resets, insurance, bank fees or rent rises. IMT is estimated with the 2026 mainland tables from the price (assuming price ≥ VPT) and does not cover the Azores, Madeira or special schemes (e.g. the youth exemption). Confirm figures with Banco de Portugal, the Tax Authority and your bank. Not tax or credit advice.