Mutual Parameters and Rent

Mortgage Loan

Fixed Price (£)

Ahead of schedule (%).≈ 50,000 €

Mutual duration (years)

Nominal Annual Rate (% Yield)

TAE (Total Addressable Equipment) indicator (%).Only informative - the calculation uses TAN (Tangent)

Purchase taxes and expenses (£)Notebook + set up accounting/bookkeeping records/VAT + appraisal

Annual Costs and Rent Alternative

Annual IMU (£)First home: 0%; Rented-out property tax reassessment for a secondary residence: approximately -0.6 to +1.1%.

Monthly condominium fee (£)

Factory insurance/year (£)

Extra maintenance cost (%) per yearpercentage on purchase price - average annual rate in Italy is between 0.5%-1.5% per annum

Revaluation of house (%/year)Italian Media Growth Rate: 1.5% per annum (Bank of Italy OMI data)

Monthly rent (£)

Annual rate increase (%)ISTAT forecasts a growth rate of approximately 2% per year for the period from 2023 to 2025.

Analysis Horizon (years)

It's worth BUYING on mortgage.

Breakeven point 2° anno - after this date the mortgage becomes more convenient.

Total Mutual Debt (TCM)

477,625 €

Cumulative costs purchase

Total Rent Cost (TRC)

486,815 €

cumulative rent canons

Monthly rate1,001 €/mese

Advance plus taxes55,000 €

Estimated final equity390,770 €

Estimated house value390,770 €

Cumulative Total Cost of Ownership - Net Equity

Show year-by-year data table

Year	Annual rate	Apartment building or condominium	Maintenance	Rent year	Mutual TCO (Total Cost of Ownership).	Total Cost of Ownership Rental Agreement.	Home value	Equity
1	12,015	1,200	2,500	12,000	71,090	12,000	253,750	58,846
2	12,015	1,200	2,500	12,240	87,180	24,240	257,556	67,930
3	12,015	1,200	2,500	12,485	103,270	36,725	261,420	77,259
4	12,015	1,200	2,500	12,734	119,360	49,459	265,341	86,839
5	12,015	1,200	2,500	12,989	135,450	62,448	269,321	96,680
6	12,015	1,200	2,500	13,249	151,540	75,697	273,361	106,789
7	12,015	1,200	2,500	13,514	167,630	89,211	277,461	117,175
8	12,015	1,200	2,500	13,784	183,720	102,995	281,623	127,845
9	12,015	1,200	2,500	14,060	199,810	117,055	285,847	138,810
10	12,015	1,200	2,500	14,341	215,900	131,396	290,135	150,077
11	12,015	1,200	2,500	14,628	231,990	146,024	294,487	161,658
12	12,015	1,200	2,500	14,920	248,080	160,944	298,905	173,561
13	12,015	1,200	2,500	15,219	264,170	176,163	303,388	185,795
14	12,015	1,200	2,500	15,523	280,260	191,686	307,939	198,374
15	12,015	1,200	2,500	15,834	296,350	207,520	312,558	211,305
16	12,015	1,200	2,500	16,150	312,440	223,670	317,246	224,602
17	12,015	1,200	2,500	16,473	328,530	240,143	322,005	238,275
18	12,015	1,200	2,500	16,803	344,620	256,946	326,835	252,337
19	12,015	1,200	2,500	17,139	360,710	274,085	331,738	266,800
20	12,015	1,200	2,500	17,482	376,800	291,567	336,714	281,675
21	12,015	1,200	2,500	17,831	392,890	309,398	341,764	296,977
22	12,015	1,200	2,500	18,188	408,980	327,586	346,891	312,721
23	12,015	1,200	2,500	18,552	425,070	346,138	352,094	328,918
24	12,015	1,200	2,500	18,923	441,160	365,061	357,376	345,586
25	12,015	1,200	2,500	19,301	457,250	384,362	362,736	362,736
26	0	1,200	2,500	19,687	461,325	404,049	368,177	368,177
27	0	1,200	2,500	20,081	465,400	424,130	373,700	373,700
28	0	1,200	2,500	20,483	469,475	444,613	379,306	379,306
29	0	1,200	2,500	20,892	473,550	465,505	384,995	384,995
30	0	1,200	2,500	21,310	477,625	486,815	390,770	390,770

Come utilizzare

Configure mutual

Insert price of property, deposit (min 20% for first-time buyers), duration and TAN. The calculator uses the French constant rate formula to determine the monthly payment.

Add accessory costs

Move-in fee (0 for first time buyer), monthly condo fee, purchase tax (notary and registration stamp ~2-5%), annual insurance, and extraordinary maintenance percentage.

Insert alternative rental

Indicate current monthly rate and expected annual increase rate. The model calculates total rent over horizon with compound growth.

Analyze the graph and break-even point

The graph shows cumulative net TCO (taking into account equity). Break-even is the year when buying becomes more convenient than continuing to rent.

Domande frequenti

What is included in the TCO of a mortgage?

Concise payment - includes purchase tax, rate, IMU, condominium fees, maintenance and insurance, minus accumulated equity (revalued home value minus remaining debt).

How is the TCO of rent calculated?

TCO Rent = Annual compound increase of revised monthly rents. Does not include variable condominium fees nor tenant's insurance.

What does break-even mean?

Break-even point is the year when cumulative net mortgage cost (excluding equity) equals or falls below total rent paid. Before break-even, it's more convenient to rent, after it's more convenient to buy.

Does calculation include passive interest deductions?

No. The 19% IRPEF deduction on passive interests (Article 15 TUIR, max €760/year on €4,000 of interest) is not included. For an estimate, also use the "Mutual Deduction 2026" tool and subtract from the TCO mutual.

How do I select the house appreciation rate?

Historical average Italian rate (Bank of Italy/OMI) is around 1.5-2% per annum nominal. Milan/Rome city center: 3-5% per annum. Periphery stagnant: 0-1%. Set a conservative value as base. Without revaluation, break-even point extends significantly.

Leasing vs Renting - Total Cost of Ownership and Breakeven Italy 2024