Nigeria Rent vs Buy Calculator 2026 Tax Impact

Should you continue renting or buy a home? See which gives you more tax benefit under Nigeria’s new 2026 rules.

Do I need the Nigeria Rent vs Buy Calculator 2026?

This tool is built for real situations that Nigerians search for every day. First-time buyers wondering if a mortgage is smarter than a yearly rent renewal. Families weighing a move to a larger home and asking if the extra space is worth the higher monthly payment. Remote workers considering a cheaper city and asking if buying there beats renting in a bigger city. Landlords and aspiring investors estimating if ownership still wins after tax, service charges and Land Use Charge. Diaspora Nigerians planning a return and asking if buying now is better than renting first while they settle in.

You enter the numbers that reflect your personal reality. Current monthly rent and how fast your landlord raises it each year. Any rent relief or deduction you expect to claim under the 2026 framework. For buying, you add property price, deposit, interest rate, mortgage term, fees, annual maintenance, estate dues and Land Use Charge. You can also add inflation, expected house price growth and your income tax band so the calculator can show the after-tax picture.

The result is a simple comparison that highlights total five-year and ten-year out-of-pocket cost, average monthly burden, tax effects and a break-even year if buying overtakes renting. You get plain language explanations that tell you why one option is cheaper and what would have to change for the other to win. This builds confidence for users who are worried about complex policy changes and hidden costs. The tone is friendly and practical while staying authoritative. If you are panicking about deadlines or unsure how new rules might work, this tool gives you a steady, numbers-first answer that you can trust.

Nigeria Rent vs Buy Calculator 2026 Tax Impact Overview

Are you tired of yearly rent increases and wondering if it’s finally time to buy your own place in Nigeria? With new 2026 tax rules adding both rent relief and extra charges on property owners, many Nigerians are asking the same question: should I keep renting or start buying?

The Nigeria Rent vs Buy Calculator 2026 Tax Impact is made for you. It shows in plain numbers whether renting or buying will cost you more over the next five to ten years. All you need to do is enter your rent today, how much it usually goes up each year, and any relief you expect to get. If you are thinking of buying, add the price of the property, the deposit you can afford, and what your bank or mortgage provider might charge in interest and fees. The tool then works out the hidden extras like Land Use Charge, service charges and maintenance costs, so you see the full picture.

Instead of leaving you confused, it gives a simple side-by-side summary:

Total rent cost versus buy cost over time
How much tax changes affect your pocket
The break-even year when buying might become cheaper than renting

It is designed for everyday Nigerians: tenants battling yearly rent hikes, young families saving to buy their first home, and Nigerians abroad planning to return. Even if you never plan to take a mortgage, the calculator still helps you weigh the true cost of continuing to rent against buying outright.

Do I need the Nigeria Rent vs Buy Calculator 2026?

Rent path measures what you pay if you keep renting. It includes today’s rent, the expected yearly increase and any tax relief on rent that may apply from 2026.

Buy path measures what you pay if you purchase. It includes deposit, mortgage repayment, one-off fees at purchase, ongoing charges, maintenance, Land Use Charge and any tax reliefs that affect your after-tax cost.

After-tax view adjusts costs where tax rules apply so you see the true impact on take-home. Because rules can vary by state and may change, the calculator treats rates and thresholds as inputs so you can set them yourself.

Inputs you provide

Rent today per month
Expected rent increase each year percent
Rent relief percent or annual cap set the one that applies to you
Gross annual income and effective tax rate percent to model tax effects
Property price and deposit percent
Mortgage interest percent and term in years
Upfront fees percent stamp duty, legal, valuation and other fees as a combined percent
Annual maintenance percent of property price
Estate dues and insurance per year
Land Use Charge percent set your local rate
House price growth percent optional for equity view
Inflation percent optional for real terms reporting
Horizon years common picks are 5 or 10

Formulas

Monthly mortgage repayment uses the standard amortisation formula
Text form
Monthly repayment = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
Where P is loan principal, r is monthly interest rate, n is total number of months.

Loan principal
P = Property price × (1 − Deposit percent)

Upfront costs at purchase
Upfront fees = Property price × Upfront fees percent

Annual buy-side ownership cost
Ownership annual = Maintenance + Estate dues + Insurance + Land Use Charge
Land Use Charge = Property price × LUC percent

Annual rent cost before tax
Rent year t = Rent year t−1 × (1 + Rent growth)

Rent relief
Rent after tax = max(Rent before tax − Relief amount, 0)
Relief amount can be set as either a percent or a fixed cap. The tool picks the lower of the two if both are filled.

Annual buy cost after tax
Buy after tax year t = 12 × Mortgage repayment + Ownership annual − Eligible tax reliefs

Totals and comparison
Total rent cost over horizon = sum of each year’s Rent after tax
Total buy cost over horizon = Upfront fees + sum of each year’s Buy after tax
Break-even year is the first year where cumulative Buy after tax ≤ cumulative Rent after tax.

Worked examples

Example 1 first-time buyer

Rent 900 per month, rent growth 8 percent
Effective tax rate 12 percent, rent relief 0 naira
Property price 45,000,000, deposit 20 percent
Interest 18 percent, term 20 years, fees 3 percent
Maintenance 1 percent, LUC 0.3 percent, estate and insurance 250,000 per year
Monthly mortgage on a 36,000,000 loan at 18 percent over 240 months
r = 0.18 ÷ 12 = 0.015
Repayment ≈ 36,000,000 × 0.015 × (1.015^240) ÷ (1.015^240 − 1) ≈ 541,000 per month
Year 1 buy after tax ≈ 12 × 541,000 + (450,000 + 250,000 + 135,000) = 6,492,000 + 835,000 = 7,327,000
Upfront fees = 45,000,000 × 3 percent = 1,350,000
Year 1 rent cost = 900 × 12 = 10,800
If we treat rent relief as zero and keep naira units consistent, over five years with 8 percent rent growth, rent totals higher than buy in this setup after about year 6 to 7. The tool will show exact break-even by cumulating cash flows.

Example 2 renter with rent relief and lower deposit

Rent 1,200 per month, growth 6 percent, rent relief 10 percent
Property price 35,000,000, deposit 10 percent
Interest 20 percent, term 25 years, fees 4 percent
Maintenance 1.2 percent, LUC 0.25 percent, estate and insurance 200,000 per year
Mortgage principal 31,500,000. With higher rate and longer term, repayment is sizeable. Rent relief trims rent in early years so renting wins for the first few years. The calculator will show break-even slips further out unless rates fall or deposit rises.

To compare the after-tax cost of renting versus buying in Nigeria using your own assumptions for 2026 and beyond.

No. Rates and reliefs differ by state and may change. You set rent relief, Land Use Charge and any reliefs that apply so the outputs match your situation.

Yes. Enter your city’s Land Use Charge rate and realistic transaction fees as a combined percent.

You can rerun the numbers with a lower interest rate and see how the payback time changes. If your bank allows refinancing, model the new rate.

Yes. Add your expected income and tax position for 2026, then set local charges for the city where you plan to buy. The tool works the same.

Yes. Add them under Upfront fees percent to capture all acquisition costs in one line.

Not always. The tool does not enforce a rule. You set rent relief percent or a cap. If none applies to you, set zero.

Yes. You can add a growth rate to see estimated equity after a period. This does not reduce cash cost but helps you weigh the long-term benefit of ownership.

They use the standard amortisation formula. Differences may arise from bank fees or changing rates. Treat results as planning guidance.

The first year when the total cost of buying becomes lower than renting after all taxes and charges. The tool shows this clearly.

Yes. Change the horizon years to 5 or 10 and the charts update instantly.

You can include an estimate of selling costs in the final year and see how that affects total buy cost.

Yes. You will see totals over the horizon plus the average monthly impact on your budget.

No. It is an educational tool to support your decision. Speak to a qualified adviser before committing.

Nigeria Rent vs Buy Calculator 2026 Tax Impact

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