Cash purchase or mortgage: compare the trade-off
Compare the cash you need upfront, loan payments and return on your own money.
Less equity does not mean less risk.
A mortgage reduces the cash you need upfront but adds interest, loan fees and repayments. Borrowing to invest can magnify both gains and losses.
Compare identical operating assumptions with and without financing. The paid mortgage comparison also accepts three user-entered offers; it is a calculation, not a bank quotation or a credit recommendation.
Computed example, not a property listing
Fictional mainland Aveiro scenario: purchase €250,000.00, tax value €150,000.00, gross monthly rent €1,400.00, financing 70%, annual interest 3.5%, term 30 years; holding period 10 years.
Tax resident, investment acquisition on 2026-09-12; no young-buyer relief; vacancy 5%, effective tax rate on net rental income 25%.
Money left per month in year one with financing: €99.67
Rent, appreciation and interest are editable assumptions, not forecasts. The downside reduces rent by 10%, increases vacancy by 5 percentage points and interest by 2 points, reduces appreciation by 2 points and adds a €1,000 annual repairs allowance. See the complete assumptions in the interactive example.
The free tools are simplified starting points. The full calculator lets you adjust costs, financing, taxes and timing, then compare scenarios for a more detailed analysis. Open the calculator
Educational estimates, not financial, legal, tax or investment advice. Methodology and sources