Rent vs Buy Calculator
Compare the true cost of renting versus buying over time
Buying
Default 20% of property price
Council rates, insurance, maintenance
Renting
What you'd earn investing the deposit instead
Over 10 years
Buying is better by $95,674
Buying Summary
- Total spent
- $656,676
- Mortgage payments
- $431,676
- Deposit
- $150,000
- Property costs
- $75,000
- Total wealth at end
- $719,557
- Property value
- $1,221,671
- Remaining loan
- -$502,114
- Monthly repayment
- $3,597/mo
- Net gain
- +$62,880
Wealth at end minus total spent
Renting Summary
- Total spent
- $327,867
- Rent paid over 10 years
- $327,867
- Total wealth at end
- $295,073
- Deposit invested
- $150,000 → $295,073
- Net cost
- -$32,794
Portfolio value minus total rent paid
How to use this calculator
When to use this
You're deciding whether to buy a property now or keep renting and invest your deposit elsewhere. This calculator compares the financial outcome of both options over time.
Steps
- Fill in the Buying side — property price, your deposit, interest rate, loan term, annual property costs (rates, insurance, maintenance), and expected capital growth.
- Fill in the Renting side — your current weekly rent, expected annual rent increases, and what return you'd get investing the deposit instead of buying.
- Choose a time horizon — how many years you want to compare over.
Understanding your results
- The verdict — tells you which option leaves you financially better off after the chosen time period, and by how much.
- Total spent — the total cash out of your pocket over the period (mortgage + deposit + costs for buying, or rent for renting).
- Total wealth — what you own at the end (property equity for buying, or investment portfolio for renting).
- Net position — wealth minus spending. This is the bottom line — a positive number means you came out ahead overall.
Tips
- Try different time horizons — buying usually wins over longer periods (15+ years), while renting can win in the short term.
- The investment return rate matters a lot for the renting side. A higher return makes renting more competitive, so be realistic about what you'd actually earn.