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Rent vs Buy Calculator

Compare the total cost of renting vs buying a property over any time period. Find the break-even point and see which option makes more financial sense for your situation.

Free ForeverNo Sign-UpBreak-Even AnalysisClassroom Ready

Property & Rent Details

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Results

Buy: Net Position
$0
Rent: Net Position
$0
Break-Even Year
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Better Option
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Cost Breakdown
Stamp Duty
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Mortgage Interest
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Maintenance & Rates
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Property Capital Gain
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Total Rent Paid
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Deposit Investment Gain
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YearBuy NetRent NetDifferenceBetter

Renting vs Buying: The Full Financial Picture

The rent vs buy decision is one of the most significant financial choices most people make. The popular view that "renting is throwing money away" is an oversimplification. Renting provides flexibility and avoids the large upfront and ongoing costs of ownership. Buying builds equity and provides a hedge against rising rents, but involves substantial transaction costs, ongoing maintenance, and opportunity cost on the deposit.

Costs of Buying

  • Upfront: Deposit (typically 10-20%), stamp duty, legal fees, building inspection, LMI if LVR above 80%
  • Ongoing: Mortgage repayments, council rates, water, strata fees (if applicable), insurance, maintenance (typically 1-2% of property value per year)
  • Opportunity cost: The deposit invested in a diversified portfolio could generate returns instead

Key insight: The rent vs buy calculation is highly sensitive to assumptions about property growth, investment returns, and how long you stay in the property. The longer you stay, the more buying tends to win. For stays under 5 years, renting is often financially superior due to transaction costs alone.

FAQ

Frequently Asked Questions

This calculator models the core financial comparison. Stamp duty varies significantly by state and property value in Australia. For a precise calculation, add stamp duty to the purchase price or reduce the deposit amount to account for it. In NSW, stamp duty on an $800,000 property is approximately $31,000.
Australian capital city property has historically grown at approximately 6-8% per year over long periods, though with significant variation by location and time period. For conservative planning, use 3-4%. For optimistic scenarios, use 6-7%. The break-even calculation is very sensitive to this assumption.
Not necessarily. If property growth is low and investment returns are high, renting and investing the deposit can outperform buying over long periods. The result depends heavily on local property market conditions, the investment return on the alternative, and how long you stay in the property.

Open Resource

Use This Resource Freely

This rent vs buy calculator is free to use, embed, and link to for educational purposes. Suitable for personal finance, economics, and financial literacy curricula.

APA 7th Citation

Acquiry. (2026). Rent vs buy calculator. Acquiry Knowledge Hub. https://www.acquiry.com/knowledge/rent-vs-buy-calculator/

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Free for any educational, personal, or professional purpose. No attribution required, though appreciated. Commercial redistribution not permitted.

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This calculator is provided for educational and illustrative purposes only. Results are estimates based on assumed constant growth rates. This does not constitute financial or investment advice.