Australia-wide · The big question
Rent vs buy calculator
The honest version: not "rent money is dead money", but a month-by-month comparison of your net position buying versus renting and investing the difference — under your assumptions.
Rates verified against the official sources — how we check.
Your tally · 10 years
Buying pulls ahead around year 4.
Before tax on the renter's investment returns; selling costs at the horizon excluded on both sides. Growth and return are effective annual rates (4% means exactly 4% over a year, on both sides), and negatives are allowed. The output is only as good as your assumptions — test several.
The only honest way to compare renting and buying
Slogans fail in both directions. "Rent money is dead money" ignores that the renter can invest the deposit and the weekly savings; "renting and investing always wins" ignores leverage — the buyer gets growth on the whole property while only putting in a deposit. So this calculator refuses a slogan and runs the ledger instead, month by month: the buyer pays the loan and the running costs and rides property growth; the renter invests the deposit, the upfront costs, and every dollar of monthly difference. Whoever ends the horizon with more net worth wins under those assumptions.
How much growth does buying need? Same inputs, four futures
Default scenario ($750,000 home, $650/week rent, 6% returns), only property growth changing:
| Property growth | Buying nets | Renting nets | Verdict at 10 years |
|---|---|---|---|
| 0% p.a. | $247,886 | $511,430 | Rent +$263,544 |
| 2% p.a. | $412,131 | $523,157 | Rent +$111,026 |
| 4% p.a. | $608,069 | $536,214 | Buy +$71,855 |
| 6% p.a. | $841,021 | $550,751 | Buy +$290,270 |
The pattern is the whole story: buying is a leveraged bet on growth. Around 2–3% growth the race is close; at long-run Australian averages buying pulls away; in a flat market the disciplined renter-investor wins. The un-modelled factors cut both ways too — owners get stability and a tax-free asset, renters get flexibility and no maintenance surprises.
Worked example
$750,000 home vs $650/week rent. The buyer puts down $150,000 plus $30,000 costs and pays $4,347/month all-in; the renter pays $2,817/month and invests the $180,000 plus the monthly difference at 6%. After 10 years at 4% growth: buyer equity $608,069 vs renter portfolio $536,214 — buying ahead by $71,855, crossing over around year 4.
Leaning towards buying? Price the entry properly: stamp duty and LMI are the two big upfronts this comparison asks you to include.
Frequently asked questions
Is it cheaper to rent or buy in Australia?
How does this rent vs buy calculator work?
What does buying add on top of the repayments?
Does the comparison include tax?
What if I can buy with a 5% deposit under the Home Guarantee Scheme?
Keep tallying
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Method & assumptions
Month-by-month simulation: standard amortised repayments; property value compounds monthly at your growth rate; owner costs 1.2% of current value per year; rent rises 3% annually; the renter's portfolio compounds monthly at your return rate with the buyer-minus-rent difference contributed (or withdrawn) each month. Verified 2026-08-27. General information only — not financial advice.
Assumptions
Fixed assumptions behind the comparison: a 30-year loan; rents rising 3% a year; owner costs (rates, insurance, maintenance) of 1.2% of the property's value annually. The renter starts with the buyer's deposit and upfront costs fully invested and banks the monthly difference between the two paths; investment returns are before tax, and selling costs at the horizon are excluded on both sides. Every other number is yours to set. The engine is covered by automated accuracy tests — see the methodology. General information only — not financial advice.