Compared with buying directly
Same down payment, and instead of rent you pay the same monthly amount as a loan instalment. The debt left after the rental phase is included.
Not included: interest on financing the remaining price, the property's running costs and maintenance. The part of the rent that is not credited is what you pay for living there during that time.
How the calculator works
- Credited = monthly rent × 12 × years × credited share + down payment, at most the purchase price
- Remaining price = purchase price − credited amount
- Purchase costs = purchase price × (real estate transfer tax + notary and land register)
- Total cost = rent paid + down payment + remaining price + purchase costs
- Total cost if bought directly = down payment + loan instalments paid + debt left after the rental phase
- Extra cost of rent-to-own = total cost of rent-to-own − total cost if bought directly
For the comparison, the calculator assumes you put in the same money: the down payment as equity and, every month, the amount of the rent as a loan instalment. The loan covers the purchase price and purchase costs minus the down payment. At the end of the rental phase you have paid what was due in both cases and still owe the rest: with rent-to-own the remaining price, when buying directly the remaining loan balance.
The inputs in brief
- Credit rate
- The share of the monthly rent credited towards the purchase price. The rest is the actual rent for living there.
- Rental phase
- The years until the time of purchase. Then the remaining price is due, usually through a loan.
- Down payment / option fee
- A one-off payment at the start. The contract sets out whether it is credited and what happens if you do not buy.
- Real estate transfer tax
- Due on purchase. Each federal state sets its own rate, currently between 3.5 and 6.5 percent of the purchase price.
- Notary and land register
- As a rough rule of thumb, 1.5 to 2 percent of the purchase price.
- Price if bought directly
- What the property would cost without rent-to-own. Rent-to-own prices are often higher because the seller waits longer for the money. If left empty, the calculator uses the same purchase price.
- Mortgage interest rate
- The annual borrowing rate of a mortgage. Whether a bank lends and at what rate depends on your creditworthiness and equity.
What the calculator leaves out
Interest on financing the remaining price, running costs, maintenance, changes in the property's value and tax questions. The result is an example calculation, not financial or legal advice.
Have a specialist lawyer review the contract before the notary appointment, and talk to your bank early about financing the remaining price.