Rent vs Buy Calculator (Australia)
Compare the long-term financial outcome of renting and investing versus buying a home in Australia. Adjust the assumptions to match your own situation.
Calculator Inputs
Projection Results
Under these assumptions, buying produces a higher net position
$110,515
Estimated advantage of buying after 10 years (Estimated Equity vs Investment Portfolio). Illustrative only.
If You Buy
Final net wealth = property value − remaining loan balance. Ownership costs are reflected on the rent side (renter invests the buyer's total housing cost minus rent).
If You Rent & Invest
Portfolio starts with your deposit and each month adds the buyer's total housing cost (mortgage + ownership costs) minus rent, compounded at the investment return rate. Rent isn't subtracted again — it's already netted out of monthly contributions.
Key Inputs Used
Mortgage repayments of $3,694 per month on a $600,000 loan at 6.25% over 30 years. Rent of $550/week growing 3% per year. Investment return of 7% per year on rented-scenario savings.
Results are illustrative projections based on your inputs and are not financial advice.
Is it better to rent or buy in Australia?
There's no universal answer to the rent vs buy question in Australia. The right choice depends on how long you'll stay in the home, the gap between renting and total cost of ownership in your area, what return you could realistically earn investing your deposit and savings, and how much you value the lifestyle and stability that ownership brings.
In broad terms, buying tends to win over horizons of 7–10 years or more, especially in markets with strong long-run capital growth and rents close to mortgage costs. Renting and investing the difference can win in expensive capital-city markets where gross rental yields are very low (often under 3%) and the gap between rent and total ownership cost is large.
Use the calculator above with conservative assumptions, then stress-test by varying the growth rate, interest rate and investment return. If buying still wins under pessimistic assumptions, that's a strong signal. If it only wins under optimistic ones, renting and investing may be the safer financial choice for your situation.
Frequently Asked Questions
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