Rent vs buy calculator
The real long-run comparison. We build both paths — the buyer's home equity and the renter's invested savings — so you can see which is really ahead over the years you'd stay, not just compare a mortgage to rent.
The place
Assumptions
Rent vs buy result
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Is it better to rent or buy?
There's no universal answer — it hinges on how long you stay, how fast prices and rents grow, and what your savings would earn instead. On a $700,000 place with a 20% deposit held for 10 years, on the default assumptions this model has buying comes out about $11,933 ahead. Nudge the growth, return or years and the result can flip — which is exactly the point.
How this calculator works
It runs both lives month by month. The buyer puts the deposit and upfront costs into the home, pays the mortgage and ownership costs, and finishes with the home's equity after selling costs. The renter invests that same deposit and, each month, invests whatever they save versus the owner's costs — compounding at your assumed return. The one with more net worth at the end wins. Buying usually needs time to overcome the big upfront costs; the break-even year shows when it pulls ahead.
What it doesn't model
It keeps returns and capital gains untaxed for simplicity — in reality your owner-occupied home is exempt from capital gains tax while investment returns are taxed, so the true picture leans a little more toward buying than the numbers show. It also can't price the things that aren't money: security and freedom to renovate on one side, flexibility and less maintenance on the other.
Rent vs buy FAQ
How many years until buying beats renting?
Often around 7–10 years, because stamp duty and buying costs take time to earn back — but it depends entirely on your growth and return assumptions. The break-even year updates as you change them.
Does it include stamp duty?
Yes, inside the upfront buying costs (default 5.5% of price). For an exact figure by state use the stamp duty calculator and enter it here.
Should I rent or buy?
That's a personal call this tool can't make for you — it shows the money side so you can weigh it against the lifestyle side. It's general information, not financial advice.
Estimate only — general information, not financial advice.