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Rent or buy: Compare the economics of two homes

How long you expect to live in the same place can matter a lot for the choice between renting and buying. When buying, transaction costs and financing must be spread over the period. When renting, you have other payments and typically tie up less capital.

Applies to the amounts in this calculator.

years

Owning

CHF
CHF
CHF
%
years
CHF/year
% per year
%

Renting

CHF/mo
% per year
CHF

After tax and costs.

% per year

Converted from EUR to CHF at 1 CHF = 1.0785 EUR (ECB, 16.10.2026).

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Worked example
  • Period: 5 years
  • Purchase price: 250,344.00 CHF
  • Down payment: 12,053.60 CHF
  • Trading costs: 6,212.24 CHF
  • Interest rate: 0 %
  • Term: 30 years
  • Rent: 1,205.36 CHF

Largest wealth after 5 years: Owning

84,375 CHF

Owning 84,375 CHF (home 250,344 CHF minus selling costs and remaining debt 198,575 CHF plus savings 32,607 CHF ) · renting 18,266 CHF · difference 66,109 CHF

The same budget every month; the cheaper home invests the difference. Repayments are savings in the home.

Use two specific housing scenarios

Enter the rent and other rental payments for one home. For the owned home, the purchase price, financing, ownership costs, maintenance and costs of a later sale are included. Shared consumption items are treated the same way.

The calculator keeps housing costs and the development of wealth separate. Principal payments move money from cash to equity. That is why they cannot be treated as a loss in the same way as interest or a fee.

Guide to a useful comparison

Choose a realistic time in the home

Look at both your expected period and a shorter period. An earlier sale can make the transaction costs more noticeable. It can also change the result if the value of the home develops differently than assumed.

Calculate with the money you do not tie up

If the renter keeps an amount that the buyer uses for the down payment, the alternative use must be shown. An assumed investment return is a scenario and must be treated with relevant costs and tax.

The result describes the chosen economic paths. The location and size of the homes and the freedom to change them can differ. So compare homes that actually meet your needs, and try several developments in home prices and interest rates. Use the budget calculator to also check your ongoing ability to pay.