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Should you rent or buy?
Put the same home side by side: bought with a mortgage, or rented while the money you'd have put down is invested. See which leaves you better off, and from which year.
A typical 55 m² two-room flat in Praha, at the area's median asking price and rent per m² today. See Praha's market
Start from an area
Pick a town, district or neighbourhood and a layout. The price and the rent become the area's medians today.
No area by that name.
Buy: after 10 years6.2M Kč
Rent: after 10 years5.1M Kč
The result
Buying comes out ahead from year 4. After 10 years you'd have 1,099,011 Kč more than if you rented.
A month in the first year
- Buying
- 43,578 Kča month
- Renting
- 25,700 Kča month
- Buying
- Mortgage: 39,923 Kč · Owner's costs: 1,630 Kč · Upkeep: 3,900 Kč · Tax relief: −1,875 Kč
- Cash on day one
- 1,889,000 Kč
- Mortgage: 7,488,000 Kč
What you'd have after 10 years
- If you buy
- 6,187,610 Kč
- If you rent
- 5,088,599 Kč
- Break-even
- Year 4
What you'd have at each year's end
Year by year
| Year | Home value | Still owed | Paid to own | Paid in rent | Buying: you'd have | Renting: you'd have |
|---|---|---|---|---|---|---|
| 1 | 9,640,800 Kč | 7,376,327 Kč | 522,936 Kč | 308,400 Kč | 1,977,996 Kč | 2,186,158 Kč |
| 2 | 9,930,024 Kč | 7,259,010 Kč | 524,928 Kč | 317,652 Kč | 2,379,322 Kč | 2,488,415 Kč |
| 3 | 10,227,925 Kč | 7,135,764 Kč | 526,980 Kč | 327,180 Kč | 2,795,755 Kč | 2,795,773 Kč |
| 4 | 10,534,762 Kč | 7,006,290 Kč | 529,092 Kč | 336,996 Kč | 3,227,896 Kč | 3,108,223 Kč |
| 5 | 10,850,805 Kč | 6,870,272 Kč | 531,252 Kč | 347,112 Kč | 3,676,374 Kč | 3,425,734 Kč |
| 6 | 11,176,329 Kč | 6,727,382 Kč | 533,496 Kč | 357,516 Kč | 4,141,837 Kč | 3,748,316 Kč |
| 7 | 11,511,619 Kč | 6,577,271 Kč | 535,812 Kč | 368,244 Kč | 4,624,967 Kč | 4,075,938 Kč |
| 8 | 11,856,968 Kč | 6,419,575 Kč | 538,188 Kč | 379,296 Kč | 5,126,475 Kč | 4,408,553 Kč |
| 9 | 12,212,677 Kč | 6,253,908 Kč | 540,636 Kč | 390,672 Kč | 5,647,099 Kč | 4,746,127 Kč |
| 10 | 12,579,057 Kč | 6,079,869 Kč | 543,156 Kč | 402,396 Kč | 6,187,610 Kč | 5,088,599 Kč |
How the comparison works
The same home, bought or rented, month by month for the years you stay. Money is never left idle: whoever pays less in a month invests the difference, and both earn the same return.
What it counts
- Buying: the down payment and the purchase costs on the first day, then each month the mortgage, the owner's costs and upkeep. The home's value grows each year.
- Renting: the rent, rising once a year. The charges for services are left out, because owners pay them too.
- The renter invests what the buyer put down on day one. After that, each month, whichever side pays less invests the difference.
- At each year's end the buyer sells: the home's value, less the mortgage still owed and the selling costs, plus their investments. The renter has their investments.
- Mortgage interest on your own home lowers your income tax base, up to a yearly cap; the saving comes back once a year with the tax return.
What it leaves out
- Inflation: everything is in today's crowns as they'll be paid, not adjusted to today's value.
- Rate changes: the rate stays the same for the whole term, though real mortgages are re-fixed every few years.
- Moving and furnishing, which both sides pay.
- Tax on investment gains: shares and funds held for over three years are free of income tax in Czechia.
- Risk: a home's value and investments can fall as well as rise, and neither is certain.
Every starting figure and its source
Verified figures come from the law or the ČNB, checked on the date shown. Assumptions are typical values: change them to yours.
Down payment20%Verified
ČNB's binding cap: a mortgage covers at most 80 % of the value (90 % for applicants under 36), so you put down at least 20 % (10 % under 36). Checked 18 October 2026
Mortgage interest relief150,000 Kč a yearVerified
Income Tax Act §15: interest on a loan for your own home lowers the tax base by up to 150,000 Kč a year for loans from 2021 (300,000 Kč for older ones). Checked 18 October 2026
Home value growth3% a yearAssumption
A little above the ČNB's inflation target. Czech home prices have risen faster in some years and fallen in others. Checked 18 October 2026
Rent growth3% a yearAssumption
The same as home values, so neither side is favoured. Many leases raise the rent with inflation once a year. Checked 18 October 2026
Return on savings4% a yearAssumption
A cautious yearly return after fees for a mixed fund. Savings accounts pay less; shares have paid more over long periods. Checked 18 October 2026
Upkeep0.5% a yearAssumption
A share of the home's value a year for what the repair fund doesn't cover: the kitchen, the bathroom, painting, appliances. Checked 18 October 2026
Selling costs3%Assumption
A share of the price: an agency's commission with VAT is usually the most of it. Selling privately costs much less. Checked 18 October 2026
Mortgage interest rate4.94%Assumption
ČNB average rate on new housing loans to households, August 2026 (4.94 %; mortgages alone 4.86 %). Your bank's offer will differ. Checked 14 October 2026
Mortgage term30 yearsAssumption
30 years, the longest term most Czech banks offer. Checked 14 October 2026
Cadastre fee2,000 Kč, onceVerified
Administrative Fees Act (634/2004 Coll.), item 120, per the Land Survey Office (ČÚZK). Checked 13 October 2026
Lawyer and escrow15,000 Kč, onceAssumption
A typical lawyer's fee for the purchase contract and the escrow of the price. Checked 13 October 2026
Repair fund (fond oprav)20 Kč/m² a monthAssumption
Set by each building's owners (Civil Code §1180); typically 10–50 Kč per m² a month, 15–20 Kč in the middle. Checked 13 October 2026
Building administration5 Kč/m² a monthAssumption
Usually 150–300 Kč per flat a month, about 5 Kč per m². Checked 13 October 2026
Insurance2,000 Kč a yearAssumption
A typical premium for insuring the flat itself, not its contents. Checked 13 October 2026
Property tax: rate3.5 Kč/m²Verified
Property Tax Act (338/1992 Coll.) §11, the rate for flats from 2024. Checked 13 October 2026
Questions
Questions about renting or buying
Is it better to rent or buy in Czechia?
It depends on three things: how many years of rent the home costs, how long you'll stay, and what your money would earn elsewhere. Where homes cost many years of rent, renting and investing the difference can leave you ahead for a long time; where rents are high against prices, buying catches up sooner. Put in your own figures, or start from an area to use its live medians.
How long do I need to stay for buying to pay off?
The calculator shows the break-even year: the first year's end from which selling would leave you better off than having rented. Buying costs about 17,000 Kč in fees up front and selling about 3% of the price at the end, so short stays favour renting.
What does an owner pay that a tenant doesn't?
The building's repair fund, its administration, insurance of the home, the yearly property tax and repairs inside the home. Tenants and owners both pay the charges for services such as heating and water, so the calculator leaves those out.
Can I deduct mortgage interest from my taxes?
Yes, for your own home. The interest lowers your income tax base by up to 150,000 Kč a year for loans from 2021, or 300,000 Kč for older ones, which saves 15% of the interest you deduct. The calculator assumes you pay at least that much income tax in Czechia; switch the relief off if you don't.
How much do I need to put down?
At least 20% of the price. The ČNB caps a mortgage at 80% of the home's value, or 90% for applicants under 36. On top come the purchase costs: the cadastre fee and a lawyer for the contract and escrow.
Is this financial advice?
No. It's a model with the assumptions shown on this page. A mortgage adviser can tell you what a bank would actually lend you and at what rate.
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