Rent vs Buy Calculator (VND)
If you live and work in Vietnam, the rent-versus-buy question carries an extra variable most local guides skip: how long will you actually stay? A two-year contract, an uncertain visa renewal, or plans to move cities all push the maths toward renting — because the transaction costs of buying and selling a property are front-loaded and only pay off over time.
This calculator compares the net cost of each path over a horizon you choose, all in Vietnamese dong. The net cost to buy is the down payment, plus every mortgage payment you make during your stay, plus buying, holding and selling costs — minus the home equity you walk away with at the end (the appreciated sale price less the remaining loan balance). The net cost to rent is simply the total rent paid over the same window, with rent rising each year. Whichever number is smaller is the cheaper option for your horizon.
Take the default scenario: a 3.000.000.000 VND apartment, 30% down (900.000.000 VND), a 2.100.000.000 VND loan over 20 years, against rent of 12.000.000 VND/month, held for 7 years. The net cost to buy works out to 500.940.055 VND versus 1.172.449.217 VND to rent — so buying is cheaper by roughly 671.509.162 VND. Shorten the horizon to three years, though, and the answer can flip entirely (see the worked example).
One caveat governs the whole page: the rates in these examples are illustrative assumptions, not forecasts — a 10%/year mortgage rate, 5%/year price appreciation, 5%/year rent growth. Vietnamese mortgage rates (often floating after a fixed teaser period), property appreciation and rent inflation all vary by district, project and date. Enter your own figures before drawing conclusions.
How the calculator computes net cost
The BUY side
Net cost to buy = down payment + total mortgage paid + buying cost + holding cost + selling cost − home equity at end
| Component | How it is computed | Default (7 yrs) |
|---|---|---|
| Down payment | Price × down-payment % | 900.000.000 |
| Mortgage paid | Monthly payment × months held | 1.702.298.182 |
| Buying cost | Price × 2% (assumed) | 60.000.000 |
| Holding cost | Price × 1%/yr × years | 210.000.000 |
| Selling cost | Sale price × 2% (assumed) | 84.426.025 |
| (−) Equity at end | Appreciated price − remaining loan − selling cost | 2.371.358.127 |
The monthly mortgage payment uses the standard amortising-annuity formula: PMT = L × r / (1 − (1 + r)^(−n)), where L is the loan, r the monthly rate (annual rate ÷ 12) and n the total number of payments. For the default case — a 2.100.000.000 VND loan at 10%/year over 20 years — that is 20.265.455 VND/month. After 84 months (7 years) the outstanding balance is still 1.765.517.116 VND, because early payments are mostly interest.
The RENT side
Net cost to rent = total rent over the horizon, with rent rising 5%/year (assumed). Year one is 12.000.000 VND/month; by the final year it has climbed to about 16.081.148 VND/month. Summed across 7 years that is 1.172.449.217 VND.
Why "equity at end" decides everything
Unlike rent, most of what you spend buying is not gone — it sits inside the property as equity and comes back when you sell. The model assumes you sell at the end of the horizon to realise it: appreciated price minus the bank's remaining claim minus selling costs. This is why the net cost to buy is far below the raw cash you paid out, and why a longer horizon — more appreciation, more principal repaid — keeps tilting the decision toward buying.
What the model leaves out
It assumes a fixed mortgage rate, steady appreciation and rent growth, and a clean sale at the end. It does not model the investment return on the cash you save by renting (a real opportunity cost — if renting is cheaper, you should invest the difference), taxes, floating-rate resets after a fixed-rate period, or the liquidity risk of needing to sell in a soft market. Treat the output as a scenario, not advice.
Worked example: a 3.000.000.000 VND apartment, 30% down, across horizons
Illustrative assumptions: a 10%/year mortgage (20-year term), 5%/year appreciation, rent of 12.000.000 VND/month growing 5%/year, buying cost 2%, holding 1%/yr, selling 2%, and a sale at the end.
| Horizon | Net cost to BUY | Net cost to RENT | Cheaper | Difference |
|---|---|---|---|---|
| 3 years | 360.593.137 | 453.960.000 | Buy | 93.366.863 |
| 7 years | 500.940.055 | 1.172.449.217 | Buy | 671.509.162 |
| 12 years | 293.931.475 | 2.292.066.219 | Buy | 1.998.134.744 |
The pattern is unmistakable: the longer you stay, the more buying wins. At a 3-year horizon the net cost to buy is 360.593.137 VND against 453.960.000 VND of rent, favouring buying — because the round-trip transaction costs (60.000.000 to buy plus 69.457.500 to sell) are crammed into too few years and appreciation has not had time to compound.
At the default 7-year horizon the balance has tipped to buying: 500.940.055 VND versus 1.172.449.217 VND, a saving of 671.509.162 VND. By 12 years buying wins decisively, at 293.931.475 VND against 2.292.066.219 VND of rent. The hinge is equity: by the end of year 7 your stake in the home is about 2.371.358.127 VND (an appreciated price of 4.221.301.268 less the 1.765.517.116 still owed and selling costs) — and that recovered value is what pulls the net cost of buying down.
A final reality check: if renting is cheaper and you invest the difference, the investment return can change the verdict. Pair this with FiMo's Home Affordability calculator to find the price your income supports, and the Capital Growth tool to model the alternative investment.
Frequently asked questions
Is it cheaper to rent or buy in Vietnam?
It depends almost entirely on how long you stay. Under the illustrative assumptions (a 3.000.000.000 VND flat, 30% down, 10%/year mortgage, 5%/year appreciation): over 3 years the net cost to buy is 360.593.137 VND versus 453.960.000 VND to rent — buying wins by 93.366.863 VND. Over 7 years, buying is cheaper by 671.509.162 VND. The longer the horizon, the more buying pays off, because transaction costs are spread over more years.
How is the net cost to buy calculated?
Net cost to buy = down payment + total mortgage paid + buying cost + holding cost + selling cost − home equity at the end. For the default 7-year case: down payment 900.000.000 + mortgage paid 1.702.298.182 + buying 60.000.000 + holding 210.000.000 + selling 84.426.025 − equity 2.371.358.127 = 500.940.055 VND. The recovered equity is what keeps the net figure far below your total cash outlay.
What would the monthly mortgage be on a 3-billion-VND apartment?
It depends on the loan and rate. With 30% down (a 2.100.000.000 VND loan) at an illustrative 10%/year over 20 years, the payment is about 20.265.455 VND/month, using the annuity formula PMT = L × r / (1 − (1 + r)^(−n)). Real Vietnamese mortgage rates vary by bank and usually float after a fixed introductory period, so enter the rate you are actually quoted.
Why does buying beat renting over 7 years despite the huge cash outlay?
Because most of what you pay to buy is not lost — it lives in the property as equity and returns when you sell. By the end of year 7 your equity is roughly 2.371.358.127 VND (an appreciated price of 4.221.301.268 minus the 1.765.517.116 still owed and selling costs). Rent, by contrast, is gone for good. After subtracting equity, the net cost to buy is just 500.940.055 VND against 1.172.449.217 VND of rent.
I might only stay 2-3 years — should I rent or buy?
For a short stay, renting almost always wins. Under the illustrative assumptions, at 3 years the net cost to buy is 360.593.137 VND versus 453.960.000 VND to rent. The round-trip transaction costs — 60.000.000 to buy and 69.457.500 to sell — are compressed into too few years, appreciation has barely accrued, and early mortgage payments are mostly interest rather than principal. This matters especially for expatriates on uncertain contracts or visa timelines.
Does the calculator account for the opportunity cost of the down payment?
The base model does not automatically add the investment return on the cash you save by renting — an important limitation. If renting is cheaper and you invest the difference (the 900.000.000 VND down payment plus any monthly savings), that return can flip the verdict. Use FiMo's Capital Growth tool to model the alternative investment, then compare it against the home equity the buying path builds.
Are the rates in the examples real Vietnamese figures?
No. The 10%/year mortgage rate, 5%/year appreciation and 5%/year rent growth are illustrative assumptions chosen to make the maths easy to follow — not market forecasts. Actual mortgage rates, property appreciation and rent inflation differ by district, project and date, and change over time. Enter your own numbers; the formulas behave identically at any values.