RENT VS BUY CALCULATOR

Use this rent vs buy calculator to compare the long-term financial impact of renting a home with buying one. Estimate how rent, mortgage repayments, property costs, home value growth, and investment assumptions may affect each scenario over time.

This tool helps you compare the financial trade-offs between renting and buying without assuming that one option is always better.

Inputs

Currency label (optional)

For display only. No FX conversion is performed.

Home purchase price

Deposit

Enter the cash deposit available for the property purchase.

Mortgage interest rate (%)

Mortgage term (years)

Monthly rent

Annual rent growth (%)

Annual home value growth (%)

Annual ownership costs (% of property value)

Estimate ongoing costs such as rates, insurance, maintenance, and other ownership expenses.

Buying costs

Include stamp duty, legal fees, inspections, and other upfront purchase costs where applicable.

Selling costs (% of future property value)

Enter a percentage, not a dollar amount. For example, enter 2 for 2%.

Expected annual investment return (%)

Used to estimate growth on the deposit, upfront costs, and any monthly housing-cost savings invested under either scenario.

Comparison period (years)

This is an educational estimate. Actual property prices, rents, investment returns, interest rates, taxes, fees, and ownership costs may differ.

Results

Enter your renting and buying assumptions to compare the estimated net value of each option over time.

How to Read the Results

The results compare the estimated financial position of renting with the estimated financial position of buying over the selected period. Outcomes depend on factors such as rent, mortgage costs, property expenses, home price growth, and the return assumed on money not tied up in a property. Small changes in these assumptions can materially change the comparison. Use the results to understand the trade-offs between the two scenarios, not to predict future property or investment returns.

Common Use Cases

Comparing the long-term cost of renting with buying
Estimating how mortgage repayments compare with ongoing rent
Understanding the impact of property ownership costs
Exploring how home price growth may affect the buying scenario
Comparing the effect of investing money that would otherwise be used for a deposit or ownership costs

Related Calculators

→ Mortgage Calculator
→ House Deposit Calculator
→ LVR Calculator

Disclaimer

All calculations provided on CalcuFinder are estimates for general informational and planning purposes only. Results depend on the information entered and the assumptions used, and actual outcomes may differ. CalcuFinder does not provide financial, investment, tax, or legal advice.