Rent vs. Buy Denmark

A specialized calculator for expats and locals comparing ejerbolig (ownership) via realkreditlån against renting.

How is this calculated?

We compare the financial future of two people who start with the exact same amount of cash (the total cash required to buy the specific property, including down payment and fees).

The Renter Strategy

Instead of paying a down payment and transaction fees, the renter takes that cash and invests it (e.g., in a global stock index). Furthermore, if the monthly cost of renting is lower than buying, the renter invests the monthly savings as well.

The Buyer Strategy

The buyer uses the cash for the down payment and fees. Their wealth grows through paying down debt (amortization) and property appreciation. However, they lose money to "unrecoverable costs" like interest, taxes, and maintenance.

Break-even Point

Year 2

When buying becomes financially superior to renting.

Upfront Cash Needed

780.275 kr.

Includes 2.000,0 % Down Pmt (700.000 kr.) + Est. Closing Costs (80.275 kr.).

Est. Monthly Cost (Yr 1)

BUY (After Tax)

15.375 kr.

RENT

12.200 kr.

General Assumptions

Time Horizon (Years)15

Investment Return (%)

Return rate if you invested your down payment in stocks instead.

Inflation (%)2,5

Buying Parameters

Purchase Price (DKK)3.500.000

Down Payment (%)

Min 5% normally, but banks often require 15-20% from expats.

Ejerudgift (Monthly)

Owner expenses: Property tax, land tax, house insurance, basic community fees.

3.500

Appreciation (%)

Expected yearly increase in property value.

Maintenance (Yearly)

Budget for repairs (approx 1% of value often recommended).

10.000

Loan Details

Realkredit Interest (%)

The 80% Mortgage loan rate.

Bidragssats (%)

Administration fee to mortgage bank (0.6% - 1.2% typical).

0,8

Bank Loan Interest (%)

The expensive 15% loan rate.

6,5

Startup Costs (Lawyer/etc)15.000

Renting Parameters

Monthly Rent (DKK)11.000

Utilities (Monthly)1.200

Deposit (Total)

Usually 3 months rent + prepaid rent.

33.000

Annual Rent Increase (%)2

Net Wealth Comparison

Buy

Rent

*Net Worth = (Asset Value - Debt) for Buyers vs. (Investment Portfolio) for Renters.
Includes simplified Danish tax deduction logic (approx 33% value of interest expenses).

Year-by-Year Breakdown

Year	Property Value	Rem. Debt	Buy Equity	Rent Wealth	Difference
1	3.605.000 kr.	2.751.588 kr.	773.137 kr.	835.365 kr.	-62.228 kr.
2	3.713.150 kr.	2.701.240 kr.	931.635 kr.	926.493 kr.	5.141 kr.
3	3.824.545 kr.	2.648.879 kr.	1.095.391 kr.	1.020.806 kr.	74.585 kr.
4	3.939.281 kr.	2.594.422 kr.	1.264.584 kr.	1.118.456 kr.	146.128 kr.
5	4.057.459 kr.	2.537.787 kr.	1.439.397 kr.	1.219.607 kr.	219.790 kr.
6	4.179.183 kr.	2.478.887 kr.	1.620.021 kr.	1.324.429 kr.	295.592 kr.
7	4.304.559 kr.	2.417.631 kr.	1.806.652 kr.	1.433.104 kr.	373.548 kr.
8	4.433.695 kr.	2.353.925 kr.	1.999.495 kr.	1.545.825 kr.	453.670 kr.
9	4.566.706 kr.	2.287.671 kr.	2.198.761 kr.	1.662.794 kr.	535.966 kr.
10	4.703.707 kr.	2.218.766 kr.	2.404.666 kr.	1.784.227 kr.	620.440 kr.
11	4.844.819 kr.	2.147.105 kr.	2.617.439 kr.	1.910.351 kr.	707.088 kr.
12	4.990.163 kr.	2.072.578 kr.	2.837.310 kr.	2.041.406 kr.	795.904 kr.
13	5.139.868 kr.	1.995.069 kr.	3.064.524 kr.	2.177.648 kr.	886.876 kr.
14	5.294.064 kr.	1.914.460 kr.	3.299.329 kr.	2.319.347 kr.	979.982 kr.
15	5.452.886 kr.	1.830.627 kr.	3.541.984 kr.	2.466.787 kr.	1.075.197 kr.

Danish Context Notes

Realkreditlån: Assumes a standard 80% LTV mortgage. The Bidragssats is the administration fee paid to the credit institute.
Skat (Tax): Interest payments and bidragssats are tax-deductible (approx. 33.6% deduction value utilized in calculation).
Transaction Costs: Includes Tinglysningsafgift (1.660 kr + 0.6% of price for deed, plus loan registration fees).
Ejerudgift: Covers property value tax (ejendomsværdiskat), land tax (grundskyld), and common expenses.