🏠 Property Tool

Rent vs Buy Calculator

Compare the true cost of renting versus buying a home over time. Built with real African mortgage rates, property appreciation data, and rental market benchmarks.

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⚙️ Your Situation
🏠 If You Buy
South Africa avg ~11.75%
Historical avg: SA 5–7%, NG 8–12%, KE 6–9%
% of home value per year
Transfer duty + legal + agent fees
🔑 If You Rent
Historical avg: SA 6–8%, NG 10–15%
If renting, you could invest your down payment. What return could you get? (SA money market ~9%, NG fixed deposit ~17%)
🏠
Result
...

🏠 Buying Total Cost

Down payment—
Buying costs—
Mortgage payments—
Maintenance & rates—
Less: Home equity—
Net cost to own—

🔑 Renting Total Cost

Total rent paid—
Insurance—
Less: Investment gains—
Net cost to rent—
Cumulative Cost Comparison by Year
Buying
Renting
🤖 AfroTools AI Insight
AI Rent Vs Buy Advisor Optional AI · provider required
Ask me anything about this tool — I can help explain results, suggest strategies, and answer questions.

🌍 African Market Context

In most African cities, buying beats renting over 7+ years due to high rent inflation (8–15%/year), strong property appreciation, and the wealth-building effect of equity.

However, high mortgage rates (Nigeria 18–26%, Ghana 28%) make buying very expensive in the short term. If you plan to move within 3 years, renting is almost always cheaper.

South Africa, Egypt and Morocco have more moderate mortgage rates (10–14%) where the break-even point is typically 4–6 years.

❓ Common Questions

When does buying make more sense? +
Buying makes sense when: you plan to stay 5+ years, you have a stable income, local mortgage rates are below 15%, and rent inflation is high (above 8%/year). In SA, Kenya and Egypt this threshold is often 4–6 years.
When should I keep renting? +
Keep renting if: you may move within 3 years, you're in a city with very high mortgage rates (Nigeria, Ghana), your down payment capital can earn returns above the home's appreciation rate, or you need flexibility for career/family reasons.
What is the "break-even" point? +
The break-even point is the year at which total buying costs become lower than total renting costs. Before this point, renting is cheaper. After it, owning is cheaper. This tool shows you that point on the timeline.
Does this account for home equity? +
Yes. The calculator subtracts your estimated home equity (appreciated home value minus remaining mortgage balance) from buying costs, so you see the real net cost of owning, not just the payments made.
Decision check

Compare the break-even result against local quotes

Use the result panel to compare rent growth, mortgage cost, ownership fees, investment return, and home equity in one planning view.

Scenario model

Built for planning, not lender approval or legal conveyancing advice.

What to check

  • Replace default rates with current lender quotes, service charges, insurance, taxes, and transfer costs for your city.
  • Test a short-stay and long-stay case; the break-even year changes sharply when you may move soon.
  • Copy or save the summary before discussing the decision with a broker, landlord, partner, or family.

Limitations

  • Property prices, mortgage rates, rent increases, taxes, and transaction fees can change and are not refreshed live here.
  • The model does not guarantee affordability, title quality, loan approval, or future property appreciation.
  • Inputs stay local to the page unless you separately choose a networked account or sharing feature.
Review comparison

Source/freshness note: verify mortgage offers, conveyancing fees, taxes, rent comparables, and property documents before signing.

How it works — methodology & sources

Updated for 2026. Here is exactly how the rent-vs-buy verdict is produced and what to verify.

Methodology & assumptions
We compare the total cost of renting against the total net cost of buying over your chosen horizon. Buying sums the mortgage repayments — using the standard amortisation formula M = P·r·(1+r)n / ((1+r)n − 1), where P is the loan after your deposit, r the monthly rate (annual ÷ 12) and n the term in months — plus upfront fees, minus the property's projected resale equity after annual appreciation. Renting compounds your current rent by the rent-inflation rate each year and adds the opportunity value of investing the deposit and any monthly savings. The break-even is the year buying's net cost drops below renting's. Assumptions: fixed mortgage rate, steady appreciation and rent inflation, and no major maintenance shocks.
Limitations & what to verify
This is a planning estimate for informational use only — it is not financial advice and does not replace a mortgage quote. Real appreciation, rent inflation and rates vary widely by city and year, and transaction taxes, insurance and maintenance can move the break-even. Verify current mortgage rates and fees with your bank or a licensed adviser before deciding.
Sources & references
Based on published African mortgage-rate ranges, property-price and rental benchmarks, and the standard amortisation method. Confirm live rates with your lender or central bank. Last verified 2026.