Tokyo Rent vs. Buy Calculator

Decide whether to rent or buy an apartment in Japan. Compare long-term costs, property depreciation, mortgage interest, and tax factors side-by-side.

Comparing two financial positions, not two monthly payments

The common mistake is to set a mortgage payment beside a rent payment and pick the smaller one. That ignores the capital locked in a down payment, the costs an owner carries and a tenant does not, and what the same money would have earned invested elsewhere. This calculator models both paths over your chosen horizon and reports a net position for each.

What goes into each side

• Renting: monthly rent, upfront move-in costs, periodic renewal fees, and the growth on the down payment you did not spend.
• Buying: purchase price, mortgage interest, ongoing maintenance and reserve fund contributions, property taxes, and the equity you build as the loan amortises.

Assumptions worth checking

The model uses standard assumptions for investment growth, maintenance rates and renewal frequency, all shown alongside the result. They are deliberately conservative, but they are assumptions rather than forecasts — adjust the inputs to match your own expectations before drawing conclusions. Japanese residential buildings also depreciate differently from land, so a long horizon on an older apartment behaves unlike the equivalent purchase in many other markets.

The part a calculator cannot model

How long you intend to stay in Japan usually matters more than any interest rate. Buying rarely repays its transaction costs over a short horizon, and visa status affects both lending terms and your flexibility to leave. If your plans are unsettled, renting well is often the stronger position. To price each path in detail, use the move-in cost calculator and the mortgage and purchase estimator.