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 NZD 2,840.89 and starting rent is NZD 2,200.00. These are editable scenario assumptions, not a market average or financial recommendation.
NZD 25,584.06
Buying generates higher estimated net worth after home equity and any invested monthly savings are combined.
NZD 262,017.79
Equity after sale costs plus investmentsNZD 236,433.73
Invested portfolioNZD 2,840.89
P&I, tax, insurance, PMI, HOA & upkeepNZD 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 | NZD 463,500.00 | NZD 356,155.97 | NZD 79,534.03 | NZD 112,826.81 | NZD -33,292.78 |
| Yr 2 | NZD 477,405.00 | NZD 352,044.70 | NZD 96,716.00 | NZD 126,692.28 | NZD -29,976.28 |
| Yr 3 | NZD 491,727.15 | NZD 347,647.61 | NZD 114,575.91 | NZD 140,574.37 | NZD -25,998.46 |
| Yr 4 | NZD 506,478.96 | NZD 342,944.83 | NZD 133,145.40 | NZD 154,448.94 | NZD -21,303.55 |
| Yr 5 | NZD 521,673.33 | NZD 337,915.11 | NZD 152,457.82 | NZD 168,289.63 | NZD -15,831.81 |
| Yr 6 | NZD 537,323.53 | NZD 332,535.71 | NZD 172,548.41 | NZD 182,067.66 | NZD -9,519.25 |
| Yr 7 | NZD 553,443.24 | NZD 326,782.33 | NZD 193,454.32 | NZD 195,751.66 | NZD -2,297.34 |
| Yr 8 | NZD 570,046.54 | NZD 320,628.98 | NZD 215,214.76 | NZD 209,307.53 | +NZD 5,907.24 |
| Yr 9 | NZD 587,147.93 | NZD 314,047.84 | NZD 237,871.22 | NZD 222,698.19 | +NZD 15,173.02 |
| Yr 10 | NZD 604,762.37 | NZD 307,009.14 | NZD 262,017.79 | NZD 236,433.73 | +NZD 25,584.06 |
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.