The classic dilemma, with real numbers. Same budget for both: the buyer pays mortgage and costs, the renter pays rent and invests the rest in ETFs every month. Who ends up with more?
Your numbers
€250,000
€900
Per month. Check listings for the same area and size.
20% · €50,000
20 years
Mortgage and assumptions (tap to change)
3.5%
25 years
7%
Taxes, notary, agency. Often 5–10% of the price, more in some countries.
1%
Maintenance, insurance, property tax, building costs, as % of the home value.
2%
2% = in line with inflation. Rent grows 2% a year; investing in ETFs at 7% a year on average.
Price = 23 years of rent · renting tends to pay off
After 20 years, what each one owns, in today’s money:
Buys the home home value − remaining mortgage + any ETFs€212,991
Rents and invests in ETFs ETF portfolio€243,809
Renting and investing in ETFs comes out ahead by about €30,818. In this period buying never catches up.
BuysRents and invests in ETFs
On day oneThe renter invests €67,500 in ETFs: the down payment and purchase costs the buyer spends
Who buys paysMortgage €1,001 + costs €208 a month
Who rents paysRent €900 a month and invests €310 in ETFs
In today’s money (2% inflation). Before taxes: ETF gains are taxed when you sell, selling a main home is often tax-free under conditions. Selling costs of the home are not included. Educational estimate, not advice.
When buying wins, and when renting and investing in ETFs wins
Buying tends to win if…
You stay at least 10 years.
Prices are low compared with rents (price under ~15 years of rent).
Mortgage rates are low and the payment is close to the rent.
Renting and investing in ETFs tends to win if…
You might move within a few years.
Prices are high compared with rents (over ~20 years of rent).
You really invest the difference in ETFs every month.
It’s not only about money
Stability: nobody can ask you to leave; you can renovate as you like.
Freedom: renting lets you move for a job or a change of life in weeks.
Eggs in one basket: a home is one asset in one city; ETFs spread your money over thousands of companies.
Discipline: a mortgage forces you to save; renting only works if you invest in ETFs automatically.
Questions
Isn’t rent just throwing money away?
Mortgage interest, property taxes, maintenance and purchase costs are also money you never get back. What matters is the full comparison, which is what this calculator does.
What if home prices rise faster?
Open "Mortgage and assumptions" and raise the home value growth. Over long periods, home prices in many countries have roughly followed inflation plus a little, but some cities did much better and others much worse.
Does the renter really have to invest the difference?
Yes. The comparison only holds if the money that would go into the home goes into ETFs every month, automatically. If it gets spent, buying wins easily.
What price-to-rent ratio is "good"?
A common rule of thumb: under about 15 years of rent buying tends to pay off, over about 20 renting does. In between, the details decide.
Next: your first plan for investing in ETFs
Answer 3 questions and get a one-page plan: how much to keep in the bank, how much to invest in ETFs each month and how to set it up.
Taxes change, and they vary. Tax rules change often, sometimes every year, and depend on your country, your region and your own situation. What you read here is a general summary, checked in October 2026: always check the current rules with an accountant or tax adviser before deciding.
Not financial advice. Educational estimates with constant average returns, before taxes. Investing in ETFs can lose money; home prices can fall too. Check your country’s rules or talk to a qualified adviser.
Privacy: no cookies and no personal data. We count visits and clicks anonymously, with a code that changes every day.