How this rent vs buy comparison works
This calculator compares the cash cost of buying against the cash cost of renting over the same time horizon. On the buying side, it adds up stamp duty, one-off legal/buying fees, mortgage interest paid over the horizon, and ongoing running costs (insurance, maintenance, Local Property Tax). It deliberately does not count principal repayments as a cost — every euro of principal you repay builds equity in your home, so it's treated as savings, not an expense.
On the renting side, it totals up rent paid over the same horizon, growing each year by the rent growth rate you set, to reflect the fact that rents in Ireland have historically tended to rise over time.
This is a simplified, cash-flow-only comparison. It does not model house price appreciation, potential investment returns on money not tied up in a deposit, tax treatment, or the non-financial value of stability that owning or renting can provide. Use it as a rough starting point, not a full financial plan.
Worked example
Consider a €350,000 property with a €35,000 deposit, a 4% mortgage rate over 30 years, compared against renting an equivalent home for €1,800 a month with rent rising 3% a year. Over a 10-year horizon, the buying side accrues stamp duty, legal fees, mortgage interest and running costs, while the renting side accrues ten years of rising rent payments. Depending on your exact numbers, one option typically comes out meaningfully cheaper in pure cash terms over that horizon — try adjusting the horizon length to see how the answer changes.
Frequently asked questions
Is it cheaper to rent or buy in Ireland?
It depends heavily on how long you plan to stay, local rent and property prices, mortgage rates, and how fast rents rise in your area. Buying tends to look better over longer horizons because interest costs shrink over time while rent keeps rising, but upfront costs weigh more heavily over short horizons.
What costs does this rent vs buy calculator include?
For buying: stamp duty, estimated legal/buying fees, mortgage interest paid over your chosen horizon, and annual running costs. Principal repayments are treated as equity, not a cost. For renting: total rent paid over the same horizon, with an assumed annual growth rate.
Does this calculator account for house price growth?
No. This is a simplified cash-cost comparison and does not forecast property price appreciation or investment returns on money not spent on a deposit. Property values can rise or fall, which materially affects the real outcome of buying versus renting.