Rent vs Buy Calculator
Loan Calculator
Compare Renting vs Buying – Make a Smarter Property Decision
Thinking about whether to buy a home or continue renting? Our Rent vs Buy Calculator helps you make an informed financial choice by comparing the long-term costs, potential savings, and equity growth of both options.
With the Australian property market constantly evolving, understanding the financial implications of each decision is crucial. This calculator provides a side-by-side breakdown of your loan repayments, rent expenses, and potential home equity, helping you see which option aligns best with your goals and lifestyle.
How the Rent vs Buy Calculator Works
Our calculator uses your inputs — including property price, deposit, loan term, interest rate, rent amount, and comparison period — to estimate the total cost of buying vs renting over time.
You can explore multiple scenarios by adjusting your inputs to see how changes in interest rates, rent increases, or property appreciation affect your financial outcome.
Example:
If you’re paying $2,200 monthly rent for a property worth $700,000, with a 20% deposit and a 6.2% loan rate, the calculator will estimate:
- Your monthly mortgage repayments
- The total interest paid over the loan term
- How much equity you could build as a homeowner
- The cumulative rent payments if you continue renting
This gives you a clear comparison of your net financial position over the years.
Rent vs Buy Calculator
*This is a guide only and does not consider all individual circumstances.
Why Compare Renting vs Buying?
The decision to rent or buy is one of the most important financial choices Australians face. While home ownership offers long-term stability and equity growth, renting provides flexibility and fewer upfront costs.
Our calculator allows you to assess both sides:
Benefits of Buying a Home
- Build long-term equity and increase your net worth.
- Gain stability and control over your property.
- Benefit from potential capital appreciation over time.
- Take advantage of first home buyer grants and government incentives.
Benefits of Renting
- Enjoy greater flexibility to relocate or change homes.
- Avoid upfront costs like stamp duty and maintenance.
- Potentially invest your savings elsewhere for better returns.
Avoid the financial commitment of a mortgage during uncertain times.
How to Use the Rent vs Buy Calculator
- Enter the Property Purchase Price – the estimated price of the home you’re considering.
- Input Your Deposit Amount – typically 10–20% of the property value.
- Add the Loan Interest Rate and Term – to calculate repayment amounts.
- Include Your Current Monthly Rent – to compare total rental costs over the same period.
- Set the Comparison Period – to view short-term or long-term projections.
Example: Rent vs Buy Scenario
Imagine you want to buy a property for $700,000 with a $140,000 deposit.
Loan Amount: $560,000
Interest Rate: 6.2%
Loan Term: 30 years
Current Rent: $2,200/month
Comparison Period: 10 years
Over 10 years:
Renting costs approx: $264,000
Buying costs approx: $401,000–$430,000 (including interest + basic ownership costs)
Estimated equity after 10 years: $120,000–$180,000 (depending on market growth)
While buying may cost more month-to-month, the built equity often closes the gap — or even puts you ahead in the long term.
Key Benefits of Using This Calculator
Clear Cost Comparison
Easily see the full financial difference between renting and buying.
Equity & Wealth Projection
Understand how home ownership increases your long-term net worth.
Personalised to Your State
Stamp duty, concessions, and FHOG vary by location — the calculator reflects that.
First Home Buyer Friendly
Evaluate grants, concessions, and incentives that reduce buying costs.
Planning & Budgeting Support
Helps you assess affordability, savings goals, and mortgage readiness.
Disclaimer
This calculator provides general estimates only and does not consider every personal or financial factor. The results should not be taken as financial or legal advice. Please consult a qualified mortgage broker or financial professional for tailored guidance.
