Rent vs Buy Calculator
Compare net worth over time — find your break-even year
Property (buying)
State
Renting
Assumptions
Annual property growth
Renter investment return (deposit stays invested)
Buying is ahead after 10 years
Buyer is $85,502 wealthier
Break-even: Year 4 — buying overtakes renting at this point
Upfront costs to buy
After 10 years
Key Assumptions
Sensitivity Analysis
Break-even year by growth & return rate
| Growth ↓ / Return → | 4% | 7% | 9% |
|---|---|---|---|
| 3% growth | Yr 11 | >30 | >30 |
| 5% growth | Yr 3 | Yr 4 | >30 |
| 7% growth | Yr 2 | Yr 2 | Yr 2 |
Highlighted cell matches your current settings. Green = <10 yrs, amber = 11–20 yrs.
Net worth over time
Break-even: Year 4Year-by-year comparison
| Year | Property value | Remaining loan | Buyer equity | Renter wealth | Difference |
|---|---|---|---|---|---|
| 1 | $840,000 | $632,141 | $207,859 | $234,063 | -$26,204 |
| 2 | $882,000 | $623,797 | $258,203 | $275,801 | -$17,598 |
| 3 | $926,100 | $614,938 | $311,162 | $319,330 | -$8,168 |
| 4★ Break-even | $972,405 | $605,533 | $366,872 | $364,737 | +$2,135 |
| 5 | $1,021,025 | $595,548 | $425,477 | $412,111 | +$13,366 |
| 6 | $1,072,077 | $584,947 | $487,130 | $461,549 | +$25,581 |
| 7 | $1,125,680 | $573,692 | $551,988 | $513,150 | +$38,839 |
| 8 | $1,181,964 | $561,743 | $620,221 | $567,020 | +$53,201 |
| 9 | $1,241,063 | $549,057 | $692,005 | $623,273 | +$68,733 |
| 10 | $1,303,116 | $535,589 | $767,527 | $682,025 | +$85,502 |
Important assumptions
•Renter invests their deposit at the selected return rate
•Buyer costs include mortgage, upkeep, council rates (~0.3%) and insurance (~0.15%)
•Capital gains tax is not applied to owner-occupied property
•Renter's annual savings (vs buyer) are reinvested each year
•Stamp duty uses ATO/state rates — FHB concessions applied if selected
•Does not include rental bond, moving costs, or transaction costs on sale
Should you rent or buy in Australia?
The answer depends heavily on how long you plan to stay, local property growth rates, and what you'd do with the deposit if you rented instead. Buying has high upfront costs (stamp duty, legal fees) that take years to recover through equity growth.
The break-even year — when buying's net worth overtakes renting's — typically falls between 5 and 15 years depending on assumptions. Shorter holding periods often favour renting; longer periods typically favour buying.
What this calculator doesn't include
This is a simplified model. It excludes capital gains tax on investment properties, negative gearing benefits, rental yield (if the purchased property is also investment-capable), and the psychological benefits of ownership such as security and renovation freedom.
For a full picture, speak with a licensed financial adviser or mortgage broker who can model your specific situation.