Rent vs Mortgage Calculator — Rent or Buy a Flat

The calculator compares the monthly cost of renting a flat with the cost of a mortgage payment. It lets you see which option is cheaper each month and what the total costs are over the full period.

The annuity payment is calculated as: P = L × [r × (1+r)^n] / [(1+r)^n − 1], where L is the loan amount, r is the monthly interest rate and n is the number of monthly payments.

Banks typically require a minimum of 10–20% down payment. A larger down payment (e.g. 30–40%) means a lower monthly payment and a smaller loan. A minimum of 20% is recommended to avoid low-equity insurance costs.

Not always. In smaller cities the mortgage payment may be comparable to rent. In large cities (Warsaw, Krakow, Wroclaw) the mortgage often exceeds rent. The calculator shows the exact difference for your figures.

The calculator computes: total rent = monthly rent × 12 × years and total mortgage = monthly payment × 12 × years. It does not account for rising rents, property value appreciation or home maintenance costs.

When buying: bank fees, valuation, insurance, civil law transaction tax (2%), notary fees, renovation. When renting: security deposit (1–3 months), utility charges, risk of rent increases.

Most Polish mortgages have a variable rate (WIBOR + margin). Fixed-rate mortgages for 5–10 years are becoming more popular. The calculator treats the entered rate as fixed for the whole term.

A longer term gives a lower monthly payment but higher total interest. A shorter term means a higher payment but less interest paid. The payment should ideally not exceed about 30–35% of monthly net income.

No. The calculator uses nominal values. In practice, inflation makes loan repayment easier over time — the real value of payments falls while rents tend to rise. For a full analysis, consider expected inflation.

No. Results are indicative and intended for initial comparison only. The decision to buy or rent is a complex financial and personal matter. We recommend consulting a financial or mortgage adviser before deciding.