Free Rent vs Buy Calculator
Compare the true cost of renting versus buying over your chosen time horizon. Enter your mortgage details and rent to see a simplified cost comparison — and which option may suit you better.
Rent vs Buy Calculator
Mr B says: This is one of the most personal financial decisions you'll make. The numbers matter, but so do your timeline, job stability, and whether you actually want to own. Be honest about all three.Buying costs
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Renting costs
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Rent vs Buy summary
Monthly mortgage payment—
Net cost of buying over period—
Net cost of renting over period—
Estimated home value at end—
Verdict (simplified)—
This is a simplified model. It does not account for taxes, insurance, maintenance, or transaction costs. Use it as a directional guide only.
⚠️ This tool is for general guidance only and is not financial advice.
Common questions
Rent vs buy questions
It depends on your time horizon, local property market, opportunity cost, and personal situation. Buying typically favours those who plan to stay for 7 or more years. Renting offers flexibility and allows you to invest the deposit in potentially higher-returning assets. Neither is universally better — this calculator helps you model the specific numbers for your situation.
The common rule of thumb is 5–7 years, to allow enough time for property appreciation to offset transaction costs (stamp duty, legal fees, agent fees on sale). In high-growth markets it can be shorter; in flat markets it can be longer. Run the calculator with your local cost assumptions.
This is a simplified model. It does not include stamp duty or transfer taxes, legal fees, building inspection, mortgage insurance, ongoing maintenance (typically 1–2% of home value per year), body corporate or strata fees, home insurance, or selling costs. These add substantially to the true cost of buying.
The breakeven point is the number of years after which buying becomes cheaper than renting, factoring in appreciation, mortgage repayments, deposit opportunity cost, and ongoing costs. It varies significantly by location, property price, and interest rates. Use the time horizon slider above to find where the numbers cross for your situation.