Rent vs Buy Calculator
Compare renting and buying a Victorian home using your deposit, rent, mortgage, ownership costs and assumptions about property and investment growth.
Example estimate
Difference after 10 years
$5,654
Buying has the higher projected net position.
| Measure | Renting | Buying |
|---|---|---|
| Initial monthly housing cost | $2,687 | $4,387 |
| Projected home equity after selling costs | N/A | $512,666 |
| Projected investments | $507,012 | $0 |
| Projected net position | $507,012 | $512,666 |
| Net position in today’s dollars | $396,077 | $400,494 |
This estimate uses the figures shown. For financial product decisions, consider advice from a licensed financial services provider.
How this estimate works
The loan uses monthly principal-and-interest payments. Rent and owner costs rise once a year at the rates entered, and the home and investment grow at constant annual rates. Enter purchase costs including stamp duty and adjust growth, investment returns and selling costs. Small changes can reverse the result. Tax, maintenance surprises and transaction timing can change real outcomes.
Example amounts illustrate the calculation. Replace them with your own figures or quotes.
How do you compare renting with buying a home?
Compare the buyer’s equity after selling costs with the renter’s invested deposit and upfront savings. Each scenario invests any monthly savings relative to the other, so both are compared using the same cash budget.