Rent escalation as a scenario

Short answer #

Use several nominal escalation rates and actual current rent. Verify contractual and legal limits outside the calculator; the model only represents entered cash flows.

Important variables #

• Price, rent and holding period
• Rate, principal and remaining balance
• Buying, maintenance and selling cost
• Appreciation and alternative return

Worked example #

€1,400 monthly rent grows to about €1,707 after ten years at 2%, or €2,072 at 4%.

Break-even: What changes the result? #

Test the main driver as a cautious, central and optimistic range. Also check whether the ranking reverses at a crossover or remains robust across the range.

Common mistakes #

• Comparing mortgage payment directly with rent
• Omitting transaction cost or remaining debt
• Treating appreciation as guaranteed

Sources & assumptions

• Deutsche Bundesbank — Bank Lending Survey Germany, July 2026 (2026-08-17)
• RATIOXA — Methodology and formulas (2026-08-17)