Buy vs Rent Calculator

Should You Buy, Keep Renting, or Rentvest?

The decision to buy or keep renting is rarely straightforward — and for many people, there is a third option worth considering: rentvesting.

This tool helps you compare the real monthly cost of buying against what you currently pay in rent, model how equity builds over time, and explore what rentvesting might look like for your situation. Use it as a starting point, then speak with a broker to understand what actually makes sense for you.

Should I Buy or Keep Renting?

See the real cost of buying vs renting, compare your long-term position, and explore rentvesting as a third option.

⚠ What this calculator covers

This is a general guide for comparing owner-occupier home buying against renting, with an optional look at rentvesting. It covers standard residential loans only and does not account for commercial loans, SMSF, construction finance, low-doc, or other specialist products. Results are estimates only. There are also many things a calculator cannot know: some lenders waive LMI entirely for certain professions, guarantor structures can change the picture significantly, and lender appetite varies. A mortgage broker can give you a more accurate and complete picture based on your specific circumstances.

Your situation

Your current weekly rent

$

Please enter a valid weekly rent.

Savings / deposit

$

Enter a valid amount.

Target purchase price (PPOR)

$

Enter a valid price.

First home buyer?

Purpose

Interest rate % p.a.

%

Loan term years

Council rates annual

$

Strata / insurance annual

$

Maintenance % of value p.a.

%

PPOR growth % p.a.

%

IP / investment growth % p.a.

%

Share / ETF return % p.a.

%

Annual rent increase % p.a.

%

Buying in a company or trust?

Buying in a company or trust can be more complex and may carry additional tax considerations – for example, land tax thresholds differ from individual ownership, and companies cannot access the 50% CGT discount. Stamp duty surcharges may also apply in some states. Consider seeking professional legal and tax advice before proceeding.

All figures shown are estimates only, based on the assumptions entered. They do not account for inflation, tax, transaction costs beyond the 4% upfront proxy, interest rate changes, or market fluctuations. Actual outcomes will vary. These numbers are intended as a starting point for conversation, not a financial forecast.

Monthly cost: buying vs your current rent

What would it cost you each month to buy your target property, compared to what you currently pay in rent?

Mortgage repayment (P&I)

-

Ownership costs / month

-

council, strata, maintenance

Total cost of buying / month

-

mortgage + all ownership costs

Your current monthly rent

-

your weekly rent x 52 / 12

Monthly difference: buying vs your current rent

-

Buying readiness – deposit vs purchase price

-

Upfront buying costs (stamp duty, legals) estimated at 4% of purchase price: -. One-off cost, not included in the monthly figure above.

Buying your home: estimated loan vs equity over 30 years

As repayments are made and the property grows in value, the loan balance falls while equity rises. The point where the two lines cross is when equity exceeds the outstanding loan balance. These are estimates based on assumed growth rates and do not represent a guaranteed outcome.

Remaining loan balance

Accumulated equity (deposit + repayments + growth)

Break-even

Assumes 6% p.a. capital growth for owner-occupied property. Equity = property value minus outstanding loan. Does not include CGT, transaction costs beyond the 4% upfront proxy, or inflation.

Est. PPOR value at 3 years

-

Est. equity at 3 years

-

Est. PPOR value at 10 years

-

Est. equity at 10 years

-

Est. PPOR value at 30 years

-

Est. equity at full payoff (30 yrs)

-

PPOR growth assumed at 6% p.a. Loan of - at - p.a., 30-year P&I. No rental income. All equity figures are pre-tax and do not account for selling costs. Your PPOR is generally exempt from CGT on sale.

Have you considered rentvesting?

What is rentvesting?

Rentvesting means renting where you want to live, while owning an investment property elsewhere. It lets you enter the property market sooner, stay flexible, and potentially build equity using leverage and rental income – without being locked into a location.

Rentvesting does not mean giving up on owning a home. It means sequencing it differently: build equity first via an investment property, then use that equity to buy your own home when the time is right.

Rentvesting assumptions

Investment property price defaults to same as PPOR

$

Gross rental yield % of IP price

%

You are controlling a significant asset with a relatively small monthly contribution. Estimates shown are pre-tax. After-tax outcomes may differ significantly – see the tax note below.

Monthly holding cost (year 1 estimate)

Investment property price

-

Monthly mortgage repayment (P&I)

-

Rental income / month (gross)

-

at 5% yield

Your rent paid / month

-

Monthly holding cost (pre-tax): rental income minus mortgage minus your rent

-

What this means: -

Illustrative tax note (not advice): - Negative gearing deductions and depreciation are not included in these figures and may significantly reduce your after-tax holding cost. Speak to an accountant for a full assessment.

Compare to renting only: -

Estimated loan vs ownership stake over 30 years

Equity = property value minus outstanding loan balance. As your tenant and your own repayments reduce the loan, and the property grows in value, your ownership stake rises. The chart shows where those two lines cross.

Remaining loan balance

Your ownership stake (equity + any invested surplus)

Break-even

Assumes 7% p.a. capital growth. Rental income grows 4% p.a. Any monthly surplus invested at assumed share return rate. All pre-tax gross estimates only.

Est. property value at 3 years

-

Est. ownership stake at 3 years

-

property value minus loan balance

Est. property value at 10 years

-

Est. ownership stake at 10 years

-

property value minus loan balance

Est. property value at 30 years

-

Est. ownership stake at 30 years

-

property value minus loan balance

Est. total wealth position at 30 years (ownership stake + any invested surplus)

-

10-year picture (estimates only)

Est. total out-of-pocket holding cost over 10 years (pre-tax)-

Est. ownership stake at 10 years-

Est. property value at 10 years-

Using your equity as a springboard. The ownership stake you build here is not locked away. It can be accessed through refinancing and used as a deposit to buy a home to live in, or to purchase another investment. Rentvesting is not a workaround – it is a deliberate strategy that many Australians use to enter the market sooner and stay geographically flexible while building long-term wealth.

Assumptions: IP price -, gross yield - in year 1 growing 4% p.a., IP growth 7% p.a., loan at -. Your rent increases at - p.a. Monthly surplus invested at - p.a. Holding cost shortfall (if any) assumed funded from other income. Does not include negative gearing, depreciation, CGT, or other tax effects. All figures are pre-tax estimates only.

Want to talk through your options?

Every situation is different. A quick conversation can help you understand which path makes the most sense for your circumstances.

Book a free 15‑minute call →

Disclaimer and Important Information

This calculator provides general information only and does not constitute financial, legal, or tax advice. It is intended as a guide only and does not take into account your personal circumstances.

All figures are estimates based on the information entered and should not be relied upon as a forecast or guarantee of future outcomes. Actual results may vary due to changes in interest rates, market conditions, government policies, and individual factors.

Costs such as stamp duty, Lenders Mortgage Insurance (LMI), and government incentives are indicative only and may vary depending on your situation and relevant authorities.

Before making any financial decisions, you should seek advice from a qualified and licensed professional.

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