Rent vs Buy Calculator

Is it better to rent or buy property?

To buy or to rent? Crunch the numbers with our buy vs. rent calculator

This calculator helps aspiring homeowners work out whether it’s a better decision to buy a home or continue renting property. By filling in the numbers, our calculator will compare your costs for buying or renting and provide the option that saves you more money. But before making a move, there are other financial and non-financial factors you should consider: Generally, homeowners feel a sense of security knowing that they are growing equity over time. Fixed mortgages offer financial predictability by paying a fixed amount throughout their mortgage. What’s more, homeowners are free to decorate and improve their home as they please. The downsides of owning a home, however, are the heavy upfront costs and the upkeep responsibilities that may be too burdensome for busier individuals.


Renters enjoy more flexible living arrangements. With smaller upfront costs, they can easily move houses or reside in better neighbourhoods, this comes handy for those who often relocate for jobs or families with changing needs. Renters are free from the responsibility of property taxes and maintenance costs, and any repairs needed are fully or partly handled by the landlord. If you want to know how much you can save by renting instead of making a home purchase, use our buy vs. rent calculator.


The right decision between buying or renting a home boils down to your living preferences, long-term plans, and financial status. If it’s clear to you where you want to live and how long you plan to stay there, and how much money you have or are willing to put out, then it might be easier to decide if the total upfront costs of buying a home is a better option than paying rent for a long time.


Leading rent vs. buy calculator in Australia


Are you ready to become a homeowner? Our easy-to-use calculator takes in your current financial situation, rental information and loan details to compare the costs between buying and renting a home. If you need more help choosing between renting and buying, get in touch with our mortgage specialists to run you through the detailed costs of buying a home. And when you are ready, we find the lenders that suit your financial capabilities and guide you through a worry-free loan approval process.


With Rateseeker’s estimation tools such as the property buying cost calculator, rent vs. buy calculator, credit card calculator and more, borrowers can work out their current financial situation so they can make important economic decisions with more confidence. Choosing between renting or buying isn’t an easy choice, but our team is ready to offer more personalised guidance. Talk to our team to know which living option best suits your circumstances and we’ll get in touch within the next 24 hours.

FAQs about this Calculator

  • What are the pros and cons of renting property?

    Advantages of renting property

    • Rent is often cheaper than a home loan repayment for the same property
    • You only need to come up with a rental bond (typically 4 weeks) to rent unlike buying a property where you may need to come up with a much larger deposit
    • Paying rent is generally less taxing on your cash flow than a home loan repayment
    • The landlord pays part of your expenses such as water rates and body corporate fees on the property
    • The landlord is responsible for repairs and maintenance on the home
    • You have more flexibility in moving around to where you want and as frequent as you want
    • You can live in areas which would be too expensive for you to buy
    • You can invest your surplus funds into other investments and not just property

    Disadvantages of renting property

    • The rent you are paying goes to paying off your landlord’s home loan
    • Landlords can review and increase your rent by giving you enough notice
    • You are unable or limited to personalising your home such as painting, landscaping etc.
    • You can get evicted if the landlord decides to sell the property
    • Rent payments can be an ongoing expense with no end in sight
  • What are the pros and cons of buying property?

    Advantages of buying a property

    • Your loan repayment is paying off an asset that you own
    • Your mortgage payments (principal and interest) are liken to a forced savings where you are building up your equity with each payment you make
    • You will have stability with living arrangement because you cannot get evicted from your own home unless the lender forecloses your property due to bad repayment conduct.
    • You can personalise your own home as much as you want through renovations
    • Property is an equity investment which means it has the potential to increase in value over time
    • You can borrow against the equity in your property to help build long term wealth
    • There is an end in sight – You will be debt free typically within 30 years or less

    Disadvantages of buying a property

    • You need to save a large deposit to cover the deposit and other associated fees with buying a property
    • Interest rates fluctuate which means your payments may increase or decrease depending on the market
    • You may not be able to borrow enough money or have enough deposit to buy a home in your desired area
    • The missed opportunities of investing your money somewhere else
    • Property values can fall thereby reducing the value of your property investment
    • Stamp duty (for purchase) and real estate agent’s commission (if selling) can erode some of your savings that you have built up if you decide to sell and buy something else
  • How to use rent vs buy calculator?

    The rent vs. buy calculator will help you work out which options can potentially be better for you. You may need to assume some of the details in the calculator and if you are unsure, you can leave the pre-populated numbers in the field. This calculator only serves as a guide only. 

    Calculator Definitions

    Below are the definitions for the terms used in the calculator.

    How much have you saved?

    This is how much you have saved over time that you can use towards your property purchase or for other investments.

    Savings / investment return

    The return you receive if you leave your money invested in a term deposit or other investments such as shares.

    Time period of analysis

    A set period of time that you will be investing your savings in term deposits or other investments instead of buying a property.

    Rent Amount

    The current rent that you are paying. If you are not paying rent than enter zero.

    Rent increase p.a.

    This is the annual percentage increase on rent you are currently paying.

    House purchase price

    The purchase price that you are considering of buying.

    Upfront purchase costs

    Your upfront cost should include stamp duty, solicitor fees etc. For a more comprehensive calculation, you can use the property buying calculator.

    Ongoing cost

    Owning a property comes with other ongoing cost such as strata fee, council rates, water rates and electricity.

    Ongoing cost increase p.a.

    It is prudent to assume the ongoing cost to increase over time which is inline with the inflationary target of 2-3%.

    Home appreciation p.a.

    Property is an equity investment which means it has the potential to increase in value in the long term.

    Loan Terms

    This is referring to the amount of time you have to repay the loan with usual loan term ranging from 25 to 30 years.

    Interest rate

    The interest rate which can be either fixed or variable is the interest rate at which you repay the loan.

  • Assumptions about this calculator

    • All results are shown in future dollars and not adjusted for inflation. If you need to consider any inflationary effects, you can reduce the savings & investment return and the home appreciation.
    • This calculator does not take into account the tax implications of buying and renting a property and return on any savings or investment.
    • Savings / investment return, Rent increase, Ongoing cost increase, Home appreciation are calculated yearly, hence they are compounding yearly.
    • In the home loan scenario, it is assumed that the repayments include both principal and interest. The repayments and interest are calculated by compounding monthly.
    • In the renting scenario, it is assumed that a year consists of 26 fortnights or 52 weeks which is counted as 364 days rather than 365 or 366 days.

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