Free tool

Rent vs Buy Calculator

Compare renting with buying over the years and see which leaves you better off.

The home

Property price

AED

Down payment

UAE residents usually need at least 20% for a first home.

Profit rate

%/yr

Finance term

yrs

Service charges & maintenance

AED/yr

Renting

Annual rent

AED

Rent increase

%/yr

Assumptions

Compare over

yrs

Property value growth

%/yr

Return on savings

%/yr

What the renter's cash could earn, for example in a Sharia-compliant savings plan.

After 10 years

Buying could leave you AED 689,479 better off

Buying breaks even with renting in year 3.

Buying

Cash needed up front: AED 415,170
Monthly instalment: AED 6,670
Home value then: AED 2,015,875
Finance still owed: AED 871,902
Your net worth: AED 1,312,088

Renting

Rent this year, per month: AED 7,500
Total rent paid: AED 1,132,010
Savings invested at the start: AED 415,170
Your net worth: AED 622,609

Your net worth over time

BuyingRenting

Net worth each year: for buying, the home's value after selling costs minus finance owed, plus savings; for renting, savings.

Cash needed to buy: AED 415,170

Down payment: AED 300,000
DLD transfer fee (4% + AED 580): AED 60,580
Finance registration (0.25% + AED 290): AED 3,290
Agency commission (2% + VAT): AED 31,500
Bank processing fee (up to 1% + VAT): AED 12,600
Valuation fee: AED 3,000
Registration trustee fee: AED 4,200
Total: AED 415,170

Indicative only. Uses typical Dubai purchase costs and a 2% selling cost at the end of the period; each month, whoever pays less invests the difference. Actual costs, profit rates and approval are set by the bank and the property.

Rent vs Buy Calculator

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