Rent vs Buy Calculator Australia
Compare the long-term financial impact of renting and investing versus buying a home in Australia. Adjust property prices, rent, growth rates and investment returns to see which path leaves you better off.
Buy Scenario
Rent & Invest Scenario
The calculator compares your net position after this many years if you buy vs keep renting and investing.
Too close to call
Renting and investing leaves you about $20,067.11 ahead after 10 years.
Initial cash required to buy
$207,662
Deposit $170,000 + stamp duty $32,662 + other costs.
Net wealth if you buy
$656,565.83
Equity after selling costs at year 10.
Net wealth if you rent & invest
$676,632.94
Assumes you invest the upfront buying costs and any yearly savings.
First-year cost to own
$64,836.75
Mortgage + owner costs in year 1.
First-year cost to rent
$39,000.00
Approx. loan repayments per year
$51,576.75
Year-by-year comparison
| Year | Property value | Loan balance | Equity (before selling) | Own cost / yr | Rent cost / yr | Invested if renting |
|---|---|---|---|---|---|---|
| 1 | $884,000 | $672,399 | $211,601 | $64,836.75 | $39,000.00 | $245,958.47 |
| 2 | $919,360 | $664,290 | $255,070 | $65,367.15 | $40,170.00 | $285,913.13 |
| 3 | $956,134 | $655,637 | $300,497 | $65,918.77 | $41,375.10 | $327,611.58 |
| 4 | $994,380 | $646,405 | $347,975 | $66,492.45 | $42,616.35 | $371,144.37 |
| 5 | $1,034,155 | $636,555 | $397,600 | $67,089.08 | $43,894.84 | $416,607.27 |
| 6 | $1,075,521 | $626,044 | $449,477 | $67,709.57 | $45,211.69 | $464,101.58 |
| 7 | $1,118,542 | $614,830 | $503,712 | $68,354.88 | $46,568.04 | $513,734.52 |
| 8 | $1,163,284 | $602,865 | $560,418 | $69,026.01 | $47,965.08 | $565,619.52 |
| 9 | $1,209,815 | $590,099 | $619,716 | $69,723.98 | $49,404.03 | $619,876.63 |
| 10 | $1,258,208 | $576,478 | $681,730 | $70,449.87 | $50,886.15 | $676,632.94 |
Deciding whether to rent or buy is a big emotional and financial decision. A buyers agent or financial adviser can help you stress-test these assumptions and build a plan.
Find a Buyers Agent|Find a Financial AdviserHow This Rent vs Buy Calculator Works
This tool compares your net wealth after a chosen number of years in two scenarios: buying a home versus continuing to rent and investing. It focuses on the big financial trade-offs most Australian households face when deciding whether to step into the property market.
In the buy scenario, the calculator includes your deposit, stamp duty, upfront buying costs, mortgage repayments and ongoing owner costs. In the rent scenario, it assumes you invest the upfront costs you would have used to buy, plus any yearly savings if renting is cheaper than owning.
What Is Included in the Buy Scenario?
The buy side assumes you purchase an owner-occupier home (not an investment property) and hold it for the selected time horizon. Key elements include:
- Deposit as a percentage of the purchase price
- Stamp duty based on the state you choose (approximate schedule)
- Other upfront buying costs such as legal fees, building inspections and loan fees
- Principal-and-interest mortgage repayments at your chosen interest rate
- Ongoing owner costs estimated as a percentage of property value (rates, insurance, maintenance)
- Property price growth over time at your chosen annual rate
At the end of the period, the calculator works out your home equity (property value minus remaining loan), subtracts selling costs, and treats the result as your net wealth from buying.
What Is Included in the Rent & Invest Scenario?
On the rent side, the calculator assumes you keep renting but invest the money that would otherwise be tied up in your home:
- The deposit, stamp duty and buying costs are invested upfront at your chosen investment return
- Each year, the model compares the annual cost of owning versus renting
- If renting is cheaper, the difference is added to your investments
- If renting becomes more expensive, the difference is withdrawn from your investments (down to zero)
- Rent increases each year at your chosen rental growth rate
The end result is your investment balance from renting, which can then be compared directly to your after-selling equity from buying.
Limitations and What This Tool Does Not Do
This calculator is designed as an educational tool, not a full financial planning model. It does not:
- Include tax effects such as negative gearing, land tax thresholds or capital gains tax
- Model government grants, stamp duty concessions or shared equity schemes
- Account for lifestyle factors such as security, flexibility or school catchments
- Guarantee investment returns or property growth rates
Small changes in growth or return assumptions can make a large difference over long periods. Use this tool to explore scenarios, then discuss your plans with a qualified mortgage broker or financial adviser.
Important information
This calculator provides general information only and does not take into account your personal objectives, financial situation or needs. It should not be relied on as financial or tax advice. Results are estimates based on simplified assumptions and do not guarantee future performance.
ATO reference: Home and land – Australian Taxation Office .
Need help deciding whether to rent or buy?
Talk to a buyers agent, mortgage broker or financial adviser before making major property decisions. If you spot an error or have ideas for improving this calculator, please contact us at [email protected].