Rent vs Buy Calculator Australia

Compare building home equity against renting and investing the difference.

Property price$Deposit$Buying costs (stamp duty, legal, etc.)$Mortgage rate%Loan termyearsAnnual property costs (rates, strata, maintenance)% of valueProperty price growth% p.a.Weekly rent (equivalent property)$Rent growth% p.a.Investment return if renting% p.a.Years to compareyears

—better position after N years

—buying: net worth (home equity)

—renting: net worth (investments)

A simplified model comparing net worth after N years: buying builds equity in the property; renting invests the deposit, buying costs, and any monthly saving versus the cost of owning. Real outcomes depend heavily on future rates, growth and investment returns, which nobody can predict.

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About the Rent vs Buy Calculator

This runs the classic rent-vs-buy comparison: if you buy, your deposit and repayments build equity in a growing asset. If you rent, that same deposit (plus buying costs you didn't pay) gets invested instead, and any month where renting costs less than owning, the difference is invested too. After your chosen number of years, it compares your net worth under each path.

How it works

For buying, it simulates the loan amortising month by month, and grows the property value at your chosen rate — buyer net worth is the final property value minus the remaining loan balance (your equity). For renting, it starts with an investment portfolio equal to the deposit plus buying costs, adds any monthly amount where owning costs (repayment + property costs) exceed rent, and grows the whole portfolio at your chosen investment return. Renter net worth is that portfolio's final value.

Assumptions and behaviour

Rent, property value and the investment portfolio all compound monthly at the annual rates you enter.
Assumes the renter actually invests the difference rather than spending it — this comparison only holds if that discipline happens.
If renting costs more than owning in a given month, no extra amount is subtracted from the renter's portfolio — it simply doesn't grow from that month's saving (real-world renters would need to fund the gap from income either way, same as a homeowner would need to fund their own repayment).

Limitations

Nobody can predict future interest rates, property growth, rent growth or investment returns — this is a scenario tool, not a forecast. Try different assumptions to see how sensitive the result is.
Doesn't include capital gains tax on investment returns (outside super) or on an investment property, or the main residence CGT exemption if the bought property is your home.
Doesn't model selling costs if you sold the property at the end of the period.

Privacy

The calculation runs entirely in your browser. Nothing is uploaded or stored.

Frequently asked questions

Is this rent vs buy calculator free?

Yes — free, no sign-up, no limits, runs in your browser.

Is buying always better long-term?

Not necessarily — it depends heavily on property growth versus investment returns, and how disciplined you'd actually be about investing the difference if renting. Try changing the growth and investment return assumptions to see how sensitive the outcome is.

Does this include tax?

No. It doesn't model capital gains tax on investments, or the main residence CGT exemption that usually applies if the property you buy is where you live.

What if renting costs more than owning each month?

The comparison still runs — the renter's portfolio simply doesn't get an extra monthly contribution in those months, since there's no cost gap in the renter's favour to invest.

Is my data uploaded?

No. Everything runs locally in your browser; nothing is sent or stored.

Written by Lakshay Kumar(TechLakshay)

A QA Automation Engineer by trade, Lakshay's real passion is untangling complex problems into simple, working solutions — which is exactly why FreeMyTask exists. On Instagram, he channels that same instinct into helping 26,000+ content creators with SEO education, motivation, and hands-on query solving.

Last updated: August 22, 2026