Rent vs Buy Calculator
Compare the long-term cost of renting vs buying in Tokyo. Accounts for acquisition tax, registration fees, annual fixed asset tax (1.4%), city planning tax (0.3%), and ongoing building charges.
Tokyo: ~1% historically
Tokyo prime: 1-3%; wood depreciates
Deposit kept invested
Verdict
Buy
Over 10 years
Breakeven Year
Year 1
Buying becomes cheaper
Rent Total (10yr)
¥33,824,355
Rent + opportunity cost
Buy Net (10yr)
¥11,274,856
Costs minus equity built
Savings (if correct)
¥22,549,499
Saved by buying
Upfront Cost to Buy
¥18,039,600
Incl. ¥2,039,600 fees
Monthly Mortgage
¥164,724
Home Value at Year 10
¥88,369,770
Equity: ¥41,639,099
10-Year Total Cost Comparison
Rent: cumulative rent + opportunity cost. Buy: upfront + ongoing costs minus equity built.
Year-by-Year Breakdown
Green rows = buying ahead cumulatively.
| Year | Rent (cumu) | + Opp Cost | Buy (cumu) | Home Equity | Buy Net |
|---|---|---|---|---|---|
| Year 1 | ¥2,640,000 | ¥541,188 | ¥21,460,292 | ¥18,492,179 | ¥2,968,113 |
| Year 2 | ¥5,306,400 | ¥1,098,612 | ¥24,895,424 | ¥20,999,989 | ¥3,895,435 |
| Year 3 | ¥7,999,464 | ¥1,672,758 | ¥28,345,140 | ¥23,523,544 | ¥4,821,597 |
| Year 4 | ¥10,719,459 | ¥2,264,129 | ¥31,809,587 | ¥26,062,959 | ¥5,746,628 |
| Year 5 | ¥13,466,653 | ¥2,873,241 | ¥35,288,911 | ¥28,618,351 | ¥6,670,561 |
| Year 6 | ¥16,241,320 | ¥3,500,626 | ¥38,783,262 | ¥31,189,836 | ¥7,593,426 |
| Year 7 | ¥19,043,733 | ¥4,146,833 | ¥42,292,789 | ¥33,777,534 | ¥8,515,255 |
| Year 8 | ¥21,874,170 | ¥4,812,426 | ¥45,817,644 | ¥36,381,563 | ¥9,436,081 |
| Year 9 | ¥24,732,912 | ¥5,497,986 | ¥49,357,981 | ¥39,002,044 | ¥10,355,937 |
| Year 10 | ¥27,620,241 | ¥6,204,114 | ¥52,913,955 | ¥41,639,099 | ¥11,274,856 |
Upfront Costs to Buy
Annual Running Costs (Year 1)
How this works
- • Opportunity cost = deposit + acquisition fees invested at 3% / year.
- • Buying includes mortgage + fixed asset tax + city planning tax + building charges + insurance.
- • Home equity = property value (at 1% / yr) minus outstanding mortgage balance.
- • Buy Net = total cash out minus equity built. Lower is better.
- • Breakeven = first year Buy Net drops below Rent + Opportunity Cost.
- • Tokyo prime condos have held value; older wood-frame houses depreciate fast — tune price growth accordingly.