Rent vs Buy Calculator
Compare the long-term cost of renting versus buying property in Nigeria, factoring in mortgage rates, rent increases, and property appreciation.
Break-even Timeline & Wealth Comparison
See when buying becomes better than renting, and how wealth compares at 5, 10, and 20 years.
Full Cash Flow Comparison & Appreciation Scenarios
Monthly cash flows, opportunity cost of down payment, and how different appreciation rates change the outcome.
How to Use This Calculator
Enter your current monthly rent, the home price you're considering buying, down payment %, mortgage rate, and comparison period in years. Also enter your expected annual rent increase and property appreciation rate. The calculator compares total costs over the full period including future home value.
What the Calculator Considers
- Renting: Cumulative rent paid over N years, growing annually at the rent increase rate. No equity built.
- Buying: Down payment upfront + total mortgage payments over the period. Future property value (appreciation) offsets the buy cost.
- Net comparison: Total rent outlay vs total buy outlay minus the future property value, showing which option costs less overall.
Example
Lagos Professional — ₦300K Rent vs ₦50M Home Purchase
At Nigeria's high mortgage rates (22%+), buying is very expensive in the short term. However, with 10% annual rent increases, renting becomes more expensive over 15–20 years. The break-even point where buying becomes cheaper depends heavily on appreciation and rent increase assumptions.