Rent vs Buy Calculator
Compare estimated costs of buying and renting over a period you choose. Results depend on your assumptions for rent, home costs, price changes and investment returns.
With the current inputs, estimated monthly ownership costs are AUD 2,701.55 and starting rent is AUD 2,200.00. These are editable scenario assumptions, not a market average or financial recommendation.
AUD 52,961.09
Buying generates higher estimated net worth after home equity and any invested monthly savings are combined.
AUD 269,859.43
Equity after sale costs plus investmentsAUD 216,898.34
Invested portfolioAUD 2,701.55
P&I, tax, insurance, PMI, HOA & upkeepAUD 2,200.00
Year 1 monthly rentCalculation is instantly saved in this shareable URL.
🗄️ Saved Comparison Scenarios (Side-by-Side)
Net Worth Trajectory Over Time
Year-by-Year Financial Progression
Tracking home appreciation, declining mortgage balance, buyer equity, and renter investment compounding.
| Year | Property Value | Mortgage Debt | Buyer Net Worth | Renter Net Worth | Net Advantage |
|---|---|---|---|---|---|
| Yr 1 | AUD 463,500.00 | AUD 355,701.54 | AUD 79,988.46 | AUD 111,107.97 | AUD -31,119.51 |
| Yr 2 | AUD 477,405.00 | AUD 351,131.15 | AUD 97,629.55 | AUD 123,148.59 | AUD -25,519.04 |
| Yr 3 | AUD 491,727.15 | AUD 346,271.62 | AUD 115,951.90 | AUD 135,093.27 | AUD -19,141.37 |
| Yr 4 | AUD 506,478.96 | AUD 341,104.64 | AUD 134,985.59 | AUD 146,910.95 | AUD -11,925.36 |
| Yr 5 | AUD 521,673.33 | AUD 335,610.80 | AUD 154,762.13 | AUD 158,567.88 | AUD -3,805.74 |
| Yr 6 | AUD 537,323.53 | AUD 329,769.40 | AUD 175,314.72 | AUD 170,027.45 | +AUD 5,287.27 |
| Yr 7 | AUD 553,443.24 | AUD 323,558.45 | AUD 196,678.20 | AUD 181,250.00 | +AUD 15,428.20 |
| Yr 8 | AUD 570,046.54 | AUD 316,954.59 | AUD 219,125.66 | AUD 192,429.10 | +AUD 26,696.56 |
| Yr 9 | AUD 587,147.93 | AUD 309,932.94 | AUD 243,475.01 | AUD 204,297.71 | +AUD 39,177.30 |
| Yr 10 | AUD 604,762.37 | AUD 302,467.06 | AUD 269,859.43 | AUD 216,898.34 | +AUD 52,961.09 |
How this rent-versus-buy calculator compares costs
The estimate compares home equity after projected appreciation, remaining mortgage balance and selling costs with the renter's invested upfront cash. Each month, the scenario with lower housing costs can invest the difference. Mortgage payments use a fixed-rate amortization formula; future home values, rent, costs and investment returns are assumptions you can change.
Country-specific costs and tax treatment
Local taxes, insurance, mortgage rules, and transaction costs vary. Enter the costs that apply to your home and verify current rules with a local authority or lender. Investment returns and home-price changes are not guaranteed.
Calculation Methodology & Proof
Rent vs buy
Both paths start with the same cash. The buyer puts it into the house; the renter invests it. Each year we compare net worth.
- Buyer cash outlay: down payment + buy closing, then PITI + maintenance each month.
- A simplified tax deduction reduces buyer cost by interest × marginal rate.
- Renter pays rent (growing) and renter insurance, and keeps the invested stake growing.
- Break-even is the first year buyer net worth exceeds renter net worth.
Important Caveats & Planning Assumptions
- Appreciation, returns, and rent growth are assumptions, not forecasts.
- Transaction costs and taxes on sale are stylized.
Frequently Asked Questions
Expert answers to common questions
Why can renting win on paper?
If the down payment would earn a high return, if you move before break-even, or if buy costs (tax, maintenance, selling costs) are high relative to rent.
Do you include the mortgage interest deduction?
A simplified deduction using your marginal tax rate is applied to interest. Caps, standard-deduction effects, and local tax treatment are not fully modelled.
What is 'advantage'?
Buyer net worth (home equity after selling costs) minus renter net worth (invested cash). Positive means buying is ahead in that year.