Rent vs Buy vs Rentvest Calculator
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Rent, Buy or Rentvest — Explore Your Options
Compare Three Strategies Using the Same Budget
Should you buy a home to live in, continue renting and invest elsewhere, or rent where you want to live while owning an investment property? Explore these three approaches before deciding which options deserve a closer look.
Our Rent vs Buy vs Rentvest Calculator compares each strategy using the same starting funds and household budget. Money not required for upfront costs or ongoing housing expenses is assumed to be invested, helping you compare cash flow, property equity and investment balances on a consistent basis.
Change the assumptions to explore different scenarios—not to predict the future. Results are estimates before tax and selling costs. Your lifestyle, borrowing capacity, comfort with risk and longer-term goals also matter.
How the Three-Strategy Comparison Works
Enter your available upfront funds, monthly housing and investment budget, and comparison period. Your monthly budget should be the amount available for housing and investing after other living expenses.
Adjust the assumptions for continuing to rent and invest, buying a home to live in, and rentvesting. Each strategy uses the same starting funds and household budget.
The calculator deducts any property deposit and purchase costs from your starting funds and invests the remainder. It then allows for rent, mortgage repayments, property expenses and investment-property rental income. Any monthly surplus is invested using your chosen investment-return assumption.
When costs exceed the monthly budget, the shortfall is withdrawn from the investment portfolio. If the portfolio cannot cover it, that strategy’s projection stops and the results identify the funding gap.
Click Compare the Three Strategies to open your comparison in a separate results tab. Review the estimated property equity, investment portfolio, cash-flow breakdown and net wealth over your selected period. Results are before tax and selling costs and illustrate your assumptions—not a guaranteed outcome.
Rent vs Buy vs Rentvest Calculator
Compare three strategies using the same starting funds and the same monthly housing and investment budget.
Example figures are prefilled for testing. They are assumptions, not rates, forecasts or recommendations. Change them to reflect your circumstances.
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The comparison opens in a separate results tab. Keep this calculator tab open to change your figures.
How the comparison works
- Each strategy starts with the same available funds. Property deposits and purchase costs are paid immediately; the remaining funds are invested.
- The same monthly budget is available to every strategy. Rent, loan repayments and property expenses are paid from it; investment-property rent offsets those costs. Any surplus is invested at month-end.
- A monthly shortfall is withdrawn from the investment portfolio. If that portfolio cannot cover it, that strategy's projection stops. No extra borrowing, property sale or additional outside cash is assumed.
- Net wealth here means property value minus the remaining mortgage, plus the investment portfolio. It covers only the assets modelled, before tax and selling costs. Negative property equity is not hidden.
- The investment return is an effective annual return, after investment fees but before tax, converted to an equivalent monthly rate. Returns are reinvested; contributions and withdrawals occur after that month's return.
- Loans use monthly principal-and-interest repayments at a constant annual loan rate divided by 12. Repayments stop when the loan is paid off. No offsets, extra repayments or interest-only periods are included.
- Weekly rent is converted using 52 weeks per year. Investment vacancy reduces annual rent by the weeks entered, spread evenly over the year. Rent, budgets and operating costs change annually, starting in year two.
- All amounts are future nominal dollars, not adjusted for inflation. Rates and growth assumptions stay constant. This is not a forecast, a borrowing-capacity assessment or a guarantee that a lender would approve the loan.
General illustration only, not personal financial, investment, tax or legal advice. Personal income tax, tax deductions, negative gearing, CGT, depreciation, grants and concessions are not calculated. Enter applicable stamp duty, purchase and loan fees in purchase costs, and ongoing rates, insurance, maintenance, management, strata and land tax in annual costs. Selling costs and portfolio transaction costs are excluded. Tax and selling costs can materially change the comparison.
Your Estimated Comparison
Understanding the comparison
All completed scenarios use the same starting funds and scheduled household budget. Their final portfolio and property-equity figures therefore use a consistent funding basis. A higher estimated net wealth is not automatically the most suitable option.
These are before-tax, before-sale estimates, not spendable sale proceeds. Lifestyle, borrowing capacity, investment risk, liquidity, property selection and tax outcomes still matter. No strategy is labelled the winner.
Test lower growth, higher interest rates, higher expenses and more vacancy. A scenario that needs portfolio withdrawals may be vulnerable to market losses or unexpected costs.
Understand the Trade-offs: Rent, Buy or Rentvest
Rather than assuming renting is “dead money” or buying is always the better choice, consider how each approach fits your budget, lifestyle and longer-term plans.
Continue Renting + Invest
This approach separates your housing choice from your investment strategy. In this calculator, your starting funds and the budget remaining after rent are invested. Actual outcomes depend on what you invest in, the contributions you maintain, fees, tax and investment performance. Investment values can fall as well as rise.
Buy a Home to Live In
This approach combines your housing and property ownership in one purchase. Your deposit and principal repayments contribute towards your equity, while changes in the property’s value also affect it. Consider the full commitment—not just the mortgage—including purchase costs, rates, insurance and maintenance. Property growth is not guaranteed.
Rentvest — Rent Where You Live, Own an Investment Property
Rentvesting separates where you live from where you buy. You continue paying rent for your home while owning a property that earns rental income. However, rental income may not cover the investment loan and property expenses. Allow for vacancies, repairs, changes in interest rates and the possibility of falling property values.
Compare the Commitment, Not Just the Headline Result
Our calculator gives each strategy the same starting funds and household budget, with unused money invested. Use the results to explore the differences in cash flow, property equity and investment balances. The highest estimated net wealth does not automatically identify the most suitable choice, and the comparison excludes tax and selling costs.
How to Use the Rent vs Buy vs Rentvest Calculator
Set Your Starting Funds and Budget
Enter the upfront funds available for this comparison, excluding emergency savings you wish to keep aside. Then enter your monthly housing and investment budget after other living expenses, your comparison period and any assumed annual budget increase.
Enter the Details for Each Strategy
Enter the rent you pay where you live. Open the buying and rentvesting sections to review each property’s price, deposit, purchase costs, loan details and ongoing expenses. For the investment property, include expected rental income and a vacancy allowance.
Review Your Assumptions
Check the assumptions for investment returns, property growth, rent changes and rising property expenses. The prefilled figures are examples—not current offers or predictions. The same investment-return assumption applies to surplus funds invested under each strategy.
Open Your Comparison
Click Compare the Three Strategies to open the results in a separate tab. Review estimated net wealth alongside property equity, investment balances and the cash-flow breakdown. Check for any warning that a strategy requires portfolio withdrawals or cannot be funded for the full comparison period.
Explore Different Scenarios
Return to the original calculator tab and change an assumption, such as the loan interest rate, property growth or vacancy allowance. Run the comparison again to see how sensitive the results are. Compare the cash commitments and risks as well as the headline figures.
Example: Comparing Rent, Buy and Rentvest on the Same Budget
The Same Starting Point
Imagine a household with $300,000 in available upfront funds and $7,500 per month for housing and investing, after other living expenses. The comparison runs for 10 years, with the monthly budget held constant.
All three strategies use an assumed 5% effective annual investment return, after investment fees but before tax. Unused starting funds and monthly budget surpluses are invested.
Continue Renting + Invest
The household continues renting at $750 per week, with rent increasing by 3% annually. The full $300,000 starting amount is invested, together with the monthly budget remaining after rent.
Buy a Home to Live In
The household purchases a $1.2 million home, using a $240,000 deposit and $50,000 for purchase costs. This leaves $10,000 invested.
The $960,000 mortgage has an assumed interest rate of 6.2% per year, with principal-and-interest repayments over 30 years. First-year ownership expenses are $8,000, increasing by 3% annually. The home’s value is assumed to grow by 3% annually.
Any monthly budget remaining after mortgage repayments and ownership expenses is invested.
Rentvest
The household continues renting its home while purchasing a $700,000 investment property, using a $140,000 deposit and $50,000 for purchase costs. This leaves $110,000 invested.
The $560,000 investment mortgage has an assumed interest rate of 6.34% per year, with principal-and-interest repayments over 30 years.
The investment property earns $600 per week, allowing for two weeks of vacancy each year, with rental income increasing by 3% annually. First-year property expenses are $8,000, increasing by 3% annually. The property’s value is assumed to grow by 3% annually.
Rental income offsets the investment-property costs. Any household budget remaining after home rent, investment-loan repayments and net property expenses is invested.
Illustrative Results After 10 Years
Using these assumptions, the estimated net wealth before tax is:
Continue Renting + Invest: $1,078,062
Buy a Home to Live In: $954,890
Rentvest: $1,019,768
For each strategy, net wealth means the investment portfolio plus any property equity. These amounts include the household’s starting funds and subsequent contributions—they are not investment profits.
What This Example Shows
The comparison accounts for unused funds being invested under every strategy, rather than comparing property equity alone with a renter’s smaller investment balance.
These are hypothetical results, not forecasts or recommendations. Changing investment returns, property growth, interest rates, rent, expenses or the household budget can change the outcome. Tax and selling costs are excluded.
What This Comparison Helps You Understand
Compare Using Equal Starting Funds and Budgets
Each strategy starts with the same available funds and household budget. Unused starting funds and monthly surpluses are invested, so the comparison accounts for money that is not committed to a property.
Understand the Ongoing Cash Commitment
Look beyond the deposit or monthly mortgage repayment. Review home rent, loan repayments, property expenses and investment rental income together. The results identify when a strategy needs portfolio withdrawals to cover shortfalls or cannot be funded for the full comparison period.
See Property Equity and Investments Together
Review the estimated investment portfolio alongside property value and the remaining mortgage. The headline net wealth figure combines the modelled investment balance and property equity, before tax and selling costs—it is not a measure of investment profit.
Explore How Different Assumptions Change the Outcome
Adjust interest rates, investment returns, property growth, rent, expenses or vacancy to explore different scenarios. Use the changes in results to understand what each strategy depends on, rather than treating one set of assumptions as a prediction.
Disclaimer
This calculator provides general information and illustrative estimates only. It does not provide personal financial, investment, tax or legal advice, assess borrowing capacity or recommend a particular strategy. Results depend on the inputs and simplified assumptions used and are not forecasts or guarantees.
Each strategy uses the same starting funds and household budget. Estimated net wealth includes only the assets and debts modelled; it is not investment profit or the amount available after selling. Figures are not adjusted for inflation.
Personal income tax, negative gearing, capital gains tax, depreciation, grants and concessions are not calculated. Purchase and ongoing property costs are included only as entered. Selling costs and portfolio transaction costs are excluded. Investment returns should be entered after investment fees but before tax. Actual costs, returns and borrowing terms may differ from the assumptions.
Seek appropriate professional advice before making borrowing or investment decisions based on these results. Any loan is subject to lender criteria, credit assessment and approval.
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Frequently Asked Questions About Renting, Buying and Rentvesting
Ready to Discuss Your Property Finance Options?
Your calculator results are a starting point for a conversation. Whether you are considering a home to live in or an investment property while continuing to rent, we can help you explore your borrowing capacity, deposit requirements and finance options based on your circumstances.