Rent vs Buy Calculator

Buying is typically better when you plan to stay in the property long-term (7+ years), property prices are growing steadily, mortgage rates are low, and the cost of owning (mortgage + rates + insurance + maintenance) is comparable to rent. The longer you hold the property, the more equity you build and the more you benefit from capital growth.

Opportunity cost refers to the returns you could earn by investing your deposit and the difference between ownership costs and rent into the share market or other investments instead of buying property. If your investments grow faster than property values, renting and investing the difference can leave you wealthier. This calculator accounts for this by modelling an investment portfolio for the renter.

This calculator assumes constant annual rates for property growth, rent increases, mortgage interest, and investment returns over the comparison period. It does not account for tax implications such as negative gearing or capital gains tax, stamp duty, buying and selling costs, renovation expenses, or changes to interest rates over time. Use the results as a guide and consult a financial adviser for personalised advice.