Buying builds home equity as you pay down the mortgage and the property (hopefully) appreciates. Renting keeps your deposit — and any month renting is cheaper than owning — invested instead. This calculator projects both paths side by side to your chosen horizon and shows which one is actually worth more, not just which one costs less month to month.
The buy scenario deducts your deposit, stamp duty (1% to €1m, 2% to €1.5m, 6% above) and legal fees upfront, then amortises a fixed-rate mortgage year by year, adding ongoing costs (maintenance, insurance, LPT) as a percentage of the home's current value. Home equity is the property's value minus the remaining mortgage balance. The rent scenario invests what you didn't spend upfront, plus — every year owning costs more than renting — the difference, compounding at your chosen return. Whichever pot is worth more at your horizon wins. This is the standard 'invest the difference' model used by most rent-vs-buy calculators; it assumes annual granularity and a fixed-rate mortgage for the whole term.
Because a mortgage payment isn't pure cost — part of it pays down principal you'll get back when you sell (equity). Rent is pure cost with nothing recovered. Comparing net worth (equity vs invested savings) accounts for that difference properly; comparing raw monthly outgoings does not.
It's worth up to €1,000 a year for a single person (€2,000 for a jointly assessed couple) — 20% of rent paid, capped. Enter it as an annual credit and this calculator subtracts it from your rent cost each year, the same way it works on your tax return.
Try a range — a 3-4% mortgage rate and 2-3% home growth are common planning assumptions for Ireland, but the honest answer is nobody knows the next 10-30 years for certain. Run it at a few different assumptions rather than trusting one number.
No — Ireland does not currently offer general mortgage interest relief for owner-occupiers (unlike some other countries), so none is modelled here.
Figures are estimates for informational purposes only, based on the assumptions you enter, and are not tax advice. Consult a tax advisor or Revenue.ie before making financial decisions.