The calculator helps you decide whether it is more profitable to buy an apartment or rent an apartment. In addition to rent, ownership costs and mortgage costs, the calculator also takes into account inflation.
The calculator's results do not include the mortgage principal, i.e. the amount of the loan you originally took out. Instead, the cost of the loan is just the interest on the loan over the loan term. This way, you will find out the real price of the mortgage. The mortgage principal becomes your asset when you repay the loan.
To calculate the cost of a mortgage, you need the mortgage amount, loan term, and mortgage interest rate. The calculator uses these variables to calculate the monthly mortgage payment. The calculator adds up the monthly loan payments for the entire loan term and subtracts the principal from this to find out the actual cost of the mortgage.
The calculator also takes inflation into account in the estimated monthly costs of owning an apartment. The calculator uses the value you enter as a starting value, which then increases with annual inflation until the end of the loan term. Of course, you can leave the costs of owning an apartment out of the calculations if you wish. You can also set inflation to zero or leave the field blank in the same way.
The calculator uses the price of the apartment you enter as the starting value. The annual change in the value of the apartment is used to calculate the value of the apartment at the end of the loan term.
The development of the value of the apartment is not included in the comparison between buying vs renting an apartment. It is presented separately in the results. This way you can decide for yourself how the development of the value affects your purchase decision. You can leave the change in value of the purchased apartment field blank if you do not want to calculate the apartment price development.
The rent of the apartment you enter in the calculator serves as a starting value. The calculator takes account of the inflation for the period of residence (the same as the loan period). If you leave inflation blank or zero, the calculator simply adds up the rent for the entire period without the inflation.
It is impossible to accurately predict the future development of the housing market. The calculator is designed to give the best possible estimate of the cost of renting and owning an apartment based on the variables you enter. You can experiment with different inflation and home value change percentages if you want to compare buying and renting under different possible future economic scenarios.