Rent vs. Buy Denmark

A specialized calculator for expats and locals comparing ejerbolig (ownership) 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).

The Renter Strategy

Instead of paying a down payment and transaction fees, the renter takes that cash and invests it. Furthermore, if the monthly cost of renting is lower than buying, the renter invests the monthly savings.

The Buyer Strategy

The buyer uses the cash for the down payment and fees. Their wealth grows through paying down debt and property appreciation. They lose money to interest, taxes, and maintenance.

Break-even Point

Year 2

When buying becomes financially superior to renting.

Upfront Cash Needed

779.920 kr.

Includes 20% Down (700.000 kr.) + Est. Closing Costs (79.920 kr.).

Est. Monthly Cost (Yr 1)

BUY (After Tax)

15.261 kr.

RENT

12.200 kr.

General Assumptions

Time Horizon (Years)15

Investment Return (%)

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

6 %

Inflation (%)2,5 %

Buying Parameters

Purchase Price (DKK)3.500.000 kr.

Down Payment (%)

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

20 %

Ejerudgift (Monthly)

Property tax, land tax, and common expenses.

3.500 kr.

Appreciation (%)

Expected yearly increase in property value.

3 %

Maintenance (Yearly)

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

10.000 kr.

Loan Details

Realkredit Interest (%)

The 80% Mortgage loan rate.

4 %

Bidragssats (%)

Administration fee to mortgage bank.

0,8 %

Extra Startup Costs

Lawyer, advisory fees, moving costs.

15.000 kr.

Renting Parameters

Monthly Rent (DKK)11.000 kr.

Utilities (Monthly)1.200 kr.

Deposit (Total)

Usually 3 months rent + prepaid rent.

33.000 kr.

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.	2.757.179 kr.	847.821 kr.	864.064 kr.	-16.242 kr.
2	3.713.150 kr.	2.712.256 kr.	1.000.894 kr.	951.409 kr.	49.485 kr.
3	3.824.545 kr.	2.665.129 kr.	1.159.416 kr.	1.042.135 kr.	117.281 kr.
4	3.939.281 kr.	2.615.689 kr.	1.323.592 kr.	1.136.431 kr.	187.161 kr.
5	4.057.459 kr.	2.563.823 kr.	1.493.636 kr.	1.234.501 kr.	259.135 kr.
6	4.179.183 kr.	2.509.413 kr.	1.669.770 kr.	1.336.562 kr.	333.209 kr.
7	4.304.559 kr.	2.452.332 kr.	1.852.227 kr.	1.442.843 kr.	409.384 kr.
8	4.433.695 kr.	2.392.450 kr.	2.041.245 kr.	1.553.590 kr.	487.655 kr.
9	4.566.706 kr.	2.329.630 kr.	2.237.076 kr.	1.669.065 kr.	568.011 kr.
10	4.703.707 kr.	2.263.728 kr.	2.439.980 kr.	1.789.547 kr.	650.433 kr.
11	4.844.819 kr.	2.194.591 kr.	2.650.227 kr.	1.915.333 kr.	734.894 kr.
12	4.990.163 kr.	2.122.062 kr.	2.868.101 kr.	2.046.742 kr.	821.359 kr.
13	5.139.868 kr.	2.045.974 kr.	3.093.894 kr.	2.184.109 kr.	909.784 kr.
14	5.294.064 kr.	1.966.152 kr.	3.327.912 kr.	2.327.797 kr.	1.000.114 kr.
15	5.452.886 kr.	1.882.414 kr.	3.570.472 kr.	2.478.189 kr.	1.092.283 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.