Rent vs buy
A rough guide to whether renting or buying works out cheaper over your time horizon.
Over 10 years
Buying could be about $111,912 cheaper
Net cost of buying
$85,980
Net cost of renting
$197,891
“Net cost” is what each path costs after crediting buying with the home's capital growth and renting with investing the deposit and upfront buying costs you'd otherwise tie up. A negative figure means you come out ahead.
A rough, educational estimate only — the result swings heavily on the assumptions. It assumes a 30-year loan, rent rising 3% p.a., running costs of 1% of the property value per year, the deposit and upfront buying costs you'd save invested at 5% p.a., and constant interest and growth rates. It ignores selling costs and your personal circumstances. Not financial advice — talk to us for guidance specific to you.
About this calculator
Rent money isn't always “dead money”, and buying isn't always the smart move — it depends on the numbers and how long you'll stay. Buying earns you any capital growth, but it comes with interest, stamp duty and running costs. Renting is simpler and frees up your deposit to invest elsewhere.
This calculator compares the net cost of each over the years you plan to stay. Be warned: the result swings a lot on the growth and return assumptions, so treat it as a starting point for a conversation, not a verdict.
How it's calculated
- Buying: we add the interest you'd pay, stamp duty, government fees and running costs (about 1% of the property value a year), then subtract the capital growth your home earns at the rate you choose.
- Renting: we total the rent you'd pay (rising ~3% a year), then subtract what the deposit and buying costs you'd avoid could earn if you invested them (assumed ~5% a year).
- Whichever path has the lower net cost over your time horizon comes out ahead. A negative net cost means that option would leave you in front.
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