Rent vs Buy Calculator
How much later is later?
Renting now, buying later? What you can borrow decides how much later. A broker can put a real number on it today, free.
Find my loan matchWhat this calculator does
Compares the long-run cost of renting versus buying the same home – weighing your deposit, repayments, buying costs and expected price growth against rent and what your deposit could earn if invested.
Reading the result
There’s no universal answer – it turns on how long you’ll stay, price growth, and the gap between rent and repayments. As a rule, the longer you stay put, the more buying tends to win, because the upfront costs get spread over more years.
Example
If buying costs $40,000 upfront and repayments run $600 a month above rent, you start behind. If the property grows even 3 to 4% a year, buying usually overtakes renting somewhere around the 5 to 7 year mark.
Frequently asked questions
What’s the break-even point? Often 5 to 7 years, but it’s very sensitive to price growth and how much more the repayments are than rent.
Does it count maintenance and rates? Good calculators include ownership costs like council rates, insurance and upkeep, which renters don’t pay directly.
Should I buy just to stop wasting rent? Not necessarily. If you’ll move within a few years, the buying costs can outweigh the benefit.
Ready to see what you can borrow? A broker can tell you what lenders will actually approve, for free. See our rankings of the best mortgage brokers in Australia.