Home Buying
Whether buying an apartment in Germany beats renting one, affordability, the risk of selling into a soft market, and what the money would have done elsewhere.
Buy or rent? The property purchase calculator
Whether buying a flat beats renting is decided by more than the purchase price. This calculator assumes you move in yourself, and brings closing costs, the loan, running costs, a possible sale and what your money would have earned as an investment into a single calculation. At the end there is a verdict you can test against your own figures.
Buy or rent: what matters
Whoever buys ties up their money in a single property and carries costs that renting does not have. Whoever rents pays rent, but can invest their capital. Which side comes out ahead depends above all on how long you stay: buying and later selling together cost around 12 to 15 percent of the price, and that has to be earned back first.
The calculator therefore shows you when buying overtakes renting and from which price growth buying pays off. It also separates the certain part of the result, repayment minus transaction costs, from the speculative part, which only arises if prices rise as assumed.
Closing costs: property transfer tax, notary and broker
On top of the purchase price come the closing costs. Each state sets its own property transfer tax: 3.5 percent in Bavaria, 6.5 percent in North Rhine-Westphalia, Brandenburg, Saarland and Schleswig-Holstein. On a flat costing 500,000 euros, that range alone makes 15,000 euros of difference. Notary and land registry cost around 1.75 percent and are almost the same everywhere.
For the broker's commission, as the buyer of a home you live in yourself you pay at most half since December 2020. If you buy privately without a broker, set the value to zero. These costs cannot be financed: your own capital covers them first, and only what is left counts as the down payment.
Equity, loan, repayment and fixed rate period
Your capital minus reserve and closing costs gives the down payment, and the purchase price gives the loan. The payment is the loan times interest plus repayment, divided by twelve. You describe the loan either by its term or by the initial repayment rate, as a bank would put it, and 2 percent is usual.
The interest rate is usually fixed for only 5, 10 or 15 years, not for the whole term. With the follow-on rate you check whether the payment would still be manageable once the fixed rate period ends.
Running costs: Hausgeld, maintenance and property tax
The Hausgeld covers running costs, management and the maintenance reserve of the owners' association. Part of it can be passed on to a tenant, who pays it too as service charges. In the comparison with the cold rent only the rest counts, that is management and reserve.
Property tax is not included in the Hausgeld. Since the 2025 reform it depends on your municipality's multiplier, so it is best to take the figure from your assessment notice. Maintenance beyond the reserve, vacancy and renovation are not included.
Price growth, sale and opportunity cost
You set the holding period, price growth and selling costs, and see how much money is left after the sale. For owner-occupiers the gain is tax-free, and for a sale within ten years you can switch the tax on. A table shows how strongly the result depends on price growth, because your equity levers every price move.
As the counter-calculation the renter invests the same capital and puts the difference between owning and renting into an investment every month. You choose the return or take it from an ETF. The tax on the renter's gains is taken into account.
How much property can I afford?
A total monthly burden up to about 33 percent of your net income counts as comfortable, and from 42 percent it gets tight. The verdict also considers the price cushion, meaning how far prices could fall before a sale no longer covers the loan, and the loan-to-value ratio.
The calculator also works out what price you could afford with your capital and how much capital the chosen property needs. You load your city's figures with one click, and every input stays editable.
Frequently asked questions about the property purchase calculator
Is it worth buying or renting?
That depends on holding period, price growth, interest rate and rent. The calculator shows when buying overtakes renting and which price growth that takes.
How high are the closing costs?
They consist of property transfer tax, notary and land registry, and your share of the broker's commission. Property transfer tax lies between 3.5 and 6.5 percent depending on the state.
How much equity do I need?
At least the closing costs, because a bank does not finance them. The less equity is left beyond that, the higher the loan and the loan-to-value ratio.
What is a good repayment rate?
2 percent is usual. At 1 percent the loan runs longer than most working lives, and from 3 percent it is paid off much sooner, but the payment rises.
What happens when the fixed rate period ends?
The remaining debt is refinanced at the rate then in force. With the follow-on rate you see how high the burden would be at an uncomfortable value.
What does the Hausgeld include?
Running costs, the property manager's fee and the maintenance reserve. Property tax comes on top separately.
Do I pay tax when I sell?
Not if you live in the flat yourself. On a sale within ten years of buying, tax can arise, and you can switch that on in the calculator.