Australia-wide · The big question
Rent vs buy calculator
Whether buying or renting and investing the difference leaves you better off, year by year, under your own assumptions.
FY 2026-27 rates · verified against the official sources.
Your tally · 10 years
Buying ahead by
$56,606
Buying pulls ahead around year 5 of 10.
How it’s worked out
Before tax on the renter's investment returns; selling costs at the horizon excluded on both sides. Growth and return are effective annual rates (4% means exactly 4% over a year, on both sides), and negatives are allowed. The output is only as good as your assumptions — test several.
The honest version: not "rent money is dead money", but a month-by-month comparison of your net position buying versus renting and investing the difference — under your assumptions.
The only honest way to compare renting and buying
Slogans fail in both directions. "Rent money is dead money" ignores that the renter can invest the deposit and the weekly savings; "renting and investing always wins" ignores leverage — the buyer gets growth on the whole property while only putting in a deposit. So this calculator refuses a slogan and runs the ledger instead, month by month: the buyer pays the loan and the running costs and rides property growth; the renter invests the deposit, the upfront costs, and every dollar of monthly difference. Whoever ends the horizon with more net worth wins under those assumptions.
How much growth does buying need? Same inputs, four futures
Default scenario ($750,000 home, $650/week rent, 6% returns), only property growth changing:
| Property growth | Buying nets | Renting nets | Verdict at 10 years |
|---|---|---|---|
| 0% p.a. | $245,230 | $524,023 | Rent +$278,793 |
| 2% p.a. | $409,475 | $535,751 | Rent +$126,276 |
| 4% p.a. | $605,413 | $548,807 | Buy +$56,606 |
| 6% p.a. | $838,365 | $563,344 | Buy +$275,021 |
The pattern is the whole story: buying is a leveraged bet on growth. In this example renting and investing is ahead at 0% and 2% growth a year, and buying at 4% and 6%. The un-modelled factors cut both ways too — owners get stability and a tax-free asset, renters get flexibility and no maintenance surprises.
Worked example
$750,000 home vs $650/week rent. The buyer puts down $150,000 plus $30,000 costs and pays $4,425/month all-in at 6.2%; the renter pays $2,817/month and invests the $180,000 plus the monthly difference at 6%. After 10 years at 4% growth: buyer equity $605,413 vs renter portfolio $548,807 — buying ahead by $56,606, crossing over around year 5.
Leaning towards buying? Price the entry properly: stamp duty and LMI are the two big upfronts this comparison asks you to include. Choosing a state above fills in the duty; LMI and legals are yours to add.
Staying put for now? The rent here is weekly and rises 3% a year by assumption. If your lease quotes a calendar month, the rent calculator converts it the way your state does, and shows the earliest date the rent can next go up.
Frequently asked questions
Is it cheaper to rent or buy in Australia?
How does this rent vs buy calculator work?
What does buying add on top of the repayments?
Does the comparison include tax?
What if I can buy with a 5% deposit under the 5% Deposit Scheme?
Keep tallying
Australia
Rentvesting calculator
The third option this page leaves out: rent where you want to live and buy an investment instead — with the CGT exemption you give up priced in.
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All 8 states
Stamp duty by state
The biggest upfront cost to feed into this comparison, for every state.
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All states
LMI calculator
Under a 20% deposit? Add LMI to your upfront costs.
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Method & assumptions
Month-by-month simulation: standard amortised repayments; property value compounds monthly at your growth rate; owner costs 1.2% of current value per year; rent rises 3% annually; the renter's portfolio compounds monthly at your return rate with the buyer-minus-rent difference contributed (or withdrawn) each month. Arithmetic checked 28 August 2026. General information only — not financial advice.
Assumptions
Fixed assumptions behind the comparison: a 30-year loan; rents rising 3% a year; owner costs (rates, insurance, maintenance) of 1.2% of the property's value annually. The renter starts with the buyer's deposit and upfront costs fully invested and banks the monthly difference between the two paths; investment returns are before tax, and selling costs at the horizon are excluded on both sides. Choosing a state fills the upfront costs with that state’s stamp duty on the price, from the same engine as the state calculators: owner-occupier rates, or first home buyer rates for an established home when that box is ticked. Every other number is yours to set. The engine is covered by automated accuracy tests — see the methodology. General information only — not financial advice.