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Miraç Özdemir
Housing Investment, Rent Multiplier & Valuation

Rent vs Buy Calculator (Mortgage vs Renting a Home)

Compare buying a home with a mortgage against renting after a chosen number of years: cash outflows, equity and net cost difference.

Version 1

Things to keep in mind:

  • Results depend entirely on your assumptions; home price growth, rent increases and returns are guesses, not forecasts.
  • The monthly difference between installment and rent is not invested, so the renting path is conservative. Use IRR/NPV tools for a full cash-flow analysis.
  • Selling costs, taxes on sale (e.g. capital gains), rental income and floating-rate loans are not modelled.
  • Set the tax switch correctly for your loan type; your bank's actual payment plan may differ.

Calculator

Buying the home

TRY

Today's purchase price of the home.

TRY

Amount you pay in cash outside the loan. If it equals or exceeds the price no loan is taken.

TRY

One-off total of title deed fee, agent commission, valuation, loan fee, etc.

TRY

First-year total of dues, property tax, insurance, maintenance, etc.

Yearly growth rate of ownership costs.

Assumed yearly growth of the home price. It is not a forecast; try several scenarios.

Mortgage

Monthly contractual interest rate (%) quoted by the bank. Taxes are added by the switch; 0 means an interest-free loan.

When off, your rate is used as entered (mortgages usually carry no tax, or the quoted rate is tax-inclusive). General-purpose consumer loans (personal, vehicle) add KKDF and BSMV on interest; turn it on for those.

Total loan term (1 - 480 months).

Renting and comparison

TRY

Monthly rent you would pay today for a similar home.

Assumed yearly rent increase applied at the start of each year after the first.

Net yearly return you could earn on the down payment and buying costs if you rented instead (deposit, fund, …).

Years after which both paths are compared (1 - 40). If longer than the loan term, the loan ends at term with zero balance.

After the first calculation, the result updates automatically when you change a value.

Result

Enter the values and press Calculate to see the result here.

About this tool

Buy a home or rent and invest the money? This tool compares both paths by their net cost after N years.

Logic

  • Loan: P = Price − Down payment; installment A = P·i / (1 − (1+i)^−n); balance after k = 12N months (capped at the term): B = P(1+i)^k − A((1+i)^k − 1)/i.
  • Buying outflow = Down payment + Buying costs + Installments + Ownership costs; equity = Price·(1+growth)^N − Remaining debt.
  • Renting outflow = rent that rises each year (geometric series: 12·R·((1+g)^N − 1)/g). The down payment and buying costs grow at the alternative return.
  • Net cost of buying = Cash outflow − Equity; net cost of renting = Rent + Initial cash − Its value at the end. A positive difference favours buying.

Example

A 3,000,000 home, 900,000 down, 2.2% monthly rate, 120 months, rent 18,000 (30% yearly rise), 15% price growth, 35% alternative return, 100,000 buying costs, 5 years: installment 49,861.49, remaining debt 1,652,261.02, equity 4,381,810.55. Under these assumptions renting is ahead by about 1,288,329.20.

How to use

  1. Enter the home price, down payment and buying costs.
  2. Enter the monthly rate, term and whether taxes apply to the loan.
  3. Enter monthly rent, yearly rent increase, home price growth and the alternative return.
  4. Enter the comparison horizon in years.
  5. Press Calculate; a positive advantage favours buying.

Notes

Amounts are rounded HALF_UP to 2 decimals. The installment and balance use closed formulas with the unrounded installment. Rent and ownership-cost increases apply at the start of each year after the first. If the horizon exceeds the term the loan ends at term. The monthly gap between installments and rent is not invested.

Sources and rates

Rates used2 parameters

Rates are valid as of November 2, 2026.

  • Tüketici kredisi faizi üzerinden BSMV

    15%
    Effective from
    July 7, 2023
    Source
    7345 sayılı Cumhurbaşkanı Kararı (RG 07.07.2023); 6802 sayılı Gider Vergileri Kanunu md. 33Open the official source
    Last reviewed
    October 1, 2026

  • Banka tüketici kredisi faizi üzerinden KKDF

    15%
    Effective from
    July 8, 2025
    Source
    GİB, KKDF oranları tablosu; 10094 sayılı Cumhurbaşkanı KararıOpen the official source
    Last reviewed
    October 1, 2026

Frequently asked questions

4 questions

  1. Net cost of renting minus net cost of buying. Positive means buying is cheaper under your assumptions; negative means renting wins.

Next step

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