Buy vs Rent Calculator
Compare the estimated financial position of buying a home versus renting and investing the upfront difference.
Your details
How the comparison works
This scenario grows the property value using your home-growth assumption, reduces it by the estimated remaining home-loan balance, and compares that with a rent-and-invest scenario. Upfront buyer cash is treated as part of the buying scenario. The bond is repaid over the bond term you enter, and each month whichever option costs less invests the difference at your investment-return assumption. Rent rises once a year.
Important limitation
This is deliberately a simplified comparison. It does not model every transfer cost, maintenance item, tax, insurance charge, selling cost or investment-fee effect. Change the assumptions and treat the result as a scenario rather than a prediction.
Related calculators
Frequently asked questions
What should I compare when deciding whether to buy or rent?
Consider housing cash flow, upfront costs, financing, expected rent changes, property costs and what your available cash could do elsewhere.
Why does the time period matter?
The longer the comparison period, the more the result is affected by assumptions about property growth, rent increases, interest and investment returns.
Is this a prediction?
No. It is a simplified scenario model and does not predict property prices, rent or investment returns.