"I am throwing money away on rent" is the line we hear most often in the office, and it almost never comes with a number attached. The honest answer is that buying does not always win: it depends on how long you are staying, how much you have saved and the gap between your rent and the mortgage payment you would face. This calculator puts all three on the table.
Rent or buy break-even calculator
Monthly payment, upfront cost including 9% transfer tax, and the years until buying pays off.
Indicative estimate. It applies the 9% Valencian Community transfer tax on resale homes and a flat provision of €2,500 for notary, land registry, gestoría and valuation. It excludes council tax, community fees, insurance and maintenance, any rise or fall in property values, and annual rent increases. Amounts are shown in Spanish format: 1.234,56 €.
What the break-even point really measures
The calculator gives you two figures, and the second is the interesting one. The first is how long it takes to recover the entire upfront outlay — deposit, tax and costs — out of the monthly saving the mortgage gives you against the rent. It is a conservative view, because it treats the deposit as money gone when in reality it becomes equity from day one.
The second figure measures only the money you never get back: the 9% transfer tax and the notary, registry and gestoría fees. That is the true cost of entering ownership, and it is what really sets the minimum horizon. With the default figures — €1,000 rent, a €200,000 home, a €60,000 deposit, 25 years at 3% — the payment works out at €663.90 a month, the upfront outlay at €80,500 and the monthly saving at €336.10. Break-even on the full outlay arrives at 20 years; on the non-recoverable costs, at 5.1 years.
The Alicante numbers in 2026
On August 2026 data, Alicante city closed at €2,721/m² to buy according to idealista, while rents sit at around €13.9/m² a month. Benidorm is considerably dearer: €3,807/m² to buy and €17.6/m² to rent.
| Item | Alicante city | Benidorm |
|---|---|---|
| Sale price | €2,721/m² | €3,807/m² |
| Rent | €13.9/m² a month | €17.6/m² a month |
| 90 m² flat: to buy | €244,890 | €342,630 |
| 90 m² flat: to rent | €1,251 a month | €1,584 a month |
| Years of rent equal to the price | 16.3 years | 18.0 years |
That last row is the property PER, and it says a lot: in Alicante it takes roughly 16 years of rent to match the purchase price of the same flat, which is a gross rental yield of 6.1%. This is a market where renting is expensive relative to buying, and that tilts the scales towards purchase — provided you have the savings and the horizon.
When renting is the right call
- A short horizon. If you are not sure you will stay in the same city for at least four or five years, the costs of getting in and out swallow any advantage.
- Not enough saved. Buying demands a 20% deposit plus 9% transfer tax and the fees. Emptying your emergency fund to reach completion is the classic recipe for regret.
- Mobility, at work or in life. A relocation, a new relationship, a project that could take you elsewhere. Renting costs more each month, but flexibility has a value that never shows up in a spreadsheet.
- Irregular income. A mortgage is a 25-year commitment; a tenancy is a one-year one.
When buying is the right call
- You are staying more than five years and the payment comes in below your current rent, which in Alicante today is the usual outcome.
- You have 30-35% of the price saved without touching your contingency fund.
- Your income is stable and the payment stays under 35% of the household's net income.
- You want protection against rising rents. On a fixed rate the payment is the same in 2026 and in 2040; the rent will not be.
The costs each option hides
The commonest mistake is to compare rent with mortgage payment and stop there. As a tenant you pay rent, utilities, the deposit and contents insurance, and you absorb the annual reviews. As an owner you also pay IBI council tax, community fees, buildings insurance, special levies, maintenance and repairs: a prudent rule is to set aside 1% of the property value each year. On a €200,000 home that is €2,000 a year, around €167 a month to subtract from the apparent saving.
And at the outset, the money that never comes back: the 9% transfer tax in the Valencian Community on resale homes — in force since 1 June 2026, with 1.4% stamp duty on new builds — plus notary, registry, gestoría and valuation. It is all itemised in our guide to the costs of buying a home in the Valencian Community.
If the result pushes you towards buying, the next step is to fine-tune the payment with the 2026 mortgage calculator and see what is actually on the market: these are the homes available in Alicante and Benidorm. And if the result says not yet, that is a good answer too: it means you have a couple of years to save without rushing.
Frequently asked questions
How long do you need to stay for buying to pay off in Alicante?
It depends on the gap between your rent and the mortgage payment, but as a benchmark: buying a 200,000 euro home with a 60,000 deposit over 25 years at 3%, the costs you never get back (9% transfer tax plus notary, registry and gestoría) are recovered in about 5 years against a rent of 1,000 euros. With a horizon shorter than three or four years, renting almost always wins.
How much does it cost to rent and to buy in Alicante in 2026?
Alicante city closed August 2026 at an average of 2,721 euros per square metre to buy, according to idealista, while rents sit at around 13.9 euros per square metre a month. For a 90 square metre flat that is roughly 244,900 euros to buy or about 1,250 euros a month to rent. Benidorm is dearer: 3,807 euros per square metre to buy and 17.6 euros to rent.
Which costs fall on the tenant and which on the owner?
The tenant pays the rent, the utilities, contents insurance and the deposit, and absorbs the annual rent reviews. The owner pays council tax (IBI), the community fees, buildings insurance, special levies, maintenance and structural repairs, and is taxed on rental income. A prudent rule is to set aside 1% of the property value each year for maintenance.
Is it better to wait for prices or Euribor to fall?
Waiting has a cost: the rent you pay meanwhile and the price rises that build up. In September 2026 Euribor is around 3.1%, the ECB raised rates on the 10th and its own projections point to an average three-month Euribor of 3% in 2027 and 2028. On that outlook, the decision should rest on your horizon and your savings, not on a rate forecast.