Rent vs buy calculator

Rent and invest, or buy?

Compare where you might end up financially after a set period if you rent and invest your savings, versus buying a home. Rent-vs-buy comparisons depend heavily on their assumptions, so ours are all listed below and you can change every input. Everything runs in your browser and nothing you enter is saved or sent.

RBA cash rate: 4.35% (as at August 2026)

How the rent vs buy calculator works

The calculator runs two paths side by side, year by year, and compares where you end up after the period you set. Both paths start with the same savings, so the comparison is fair.

On the buy path, your savings pay the deposit and upfront costs, and anything left over stays invested. The home grows in value at the rate you set, the loan is paid down on schedule, and you cover the ongoing costs of owning. Your buy position at the end is your home equity plus any remaining investments.

On the rent path, all your savings stay invested. Each year the calculator compares the buyer's total outgoings with your rent, and invests the difference when renting is cheaper, or draws it down when renting is dearer. Your rent position at the end is that investment balance. Because rent-vs-buy results depend heavily on the assumptions, every input is yours to change, and the model excludes selling costs, tax effects, and maintenance beyond the ongoing figure.

Worked example: With $200,000 in savings, a $800,000 home on a $680,000 loan at 6.00%, 4% yearly price growth and a 5% investment return, buying tends to come out ahead over 10 years, mostly because the home grows in value and the loan is paid down. Change the growth or return rates and the answer can flip.

Assumptions

The comparison runs in annual steps over the analysis period you set.
Buy path: the deposit (price minus loan) and upfront costs are paid from your savings; any remaining savings are invested at the investment return. The home grows by the appreciation rate, and the loan is paid down on its repayment schedule.
Rent path: all savings stay invested at the investment return. Each year the renter invests the difference between the buyer outgoings and the rent when positive, and draws it down when negative.
Buyer outgoings each year are 12 monthly repayments plus ongoing ownership costs, with ongoing costs growing by their increase rate.
The buy net position is home equity (value minus loan balance) plus the buyer invested remainder. The rent net position is the investment balance.
Excludes selling costs, tax effects (including capital gains, negative gearing, and tax on investment returns), and maintenance beyond the ongoing costs figure.
All rates (investment return, rent increase, ongoing cost increase, home value growth, and loan interest) are assumed constant for the whole period.

Frequently asked questions

Is it better to rent or buy in Australia?

There is no single answer. It depends on how long you stay, home price growth, the return you could earn by investing instead, rent increases, and your upfront and ongoing costs. This calculator lets you test your own assumptions rather than rely on a rule of thumb.

What costs does the rent vs buy calculator include and exclude?

It includes the deposit, upfront purchase costs, loan repayments, ongoing ownership costs, home value growth, rent and rent increases, and the return on invested savings. It excludes selling costs, tax effects such as capital gains and negative gearing, and maintenance beyond the ongoing costs figure you enter.

How does home price growth affect the result?

Strongly. Because a home is usually a large, geared asset, even a modest yearly growth rate compounds into a big number over time. A higher growth rate favours buying; a higher investment return on savings favours renting and investing. Try both to see how sensitive your result is.

Why does the buy path sometimes win by so much?

Buying combines forced saving (paying down the loan builds equity) with leverage (you gain or lose value on the whole home, not just your deposit). Over long periods with steady growth that can dominate. Over short periods, or with high upfront costs and flat prices, renting and investing can win.

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Important

The results from this calculator are estimates for general information and education only. They are based on the assumptions stated and the figures you enter, and do not take your personal circumstances, lender policies, or eligibility into account. They are not financial advice, credit assistance, or an offer of credit. Speak to a licensed finance broker or your lender before making decisions. Broker Codex is a directory platform and does not provide credit assistance.