Is buying always better than renting?
No, despite the common saying. Over short horizons, high interest rates or slow-growth markets, renting and investing the difference can win. This calculator lets you test your own numbers.
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Buy vs Rent Calculator
Compare the rough net cost of buying versus renting over a chosen horizon, allowing for mortgage interest, ownership costs and capital growth. Simplified — see assumptions.
buy cost = interest + ownership costs − capital growth ; rent cost = weekly rent × 52 × years
Frequently asked questions
What costs of buying does it count?
Mortgage interest and ongoing ownership costs, offset by capital growth. It is a simplified net-cost view, not a full cashflow model.
Why does the time horizon matter?
Because buying has big up-front costs that take years to outweigh. The longer you stay, the more buying tends to win, which is why horizon is a key input.
What does it leave out?
Maintenance surprises, the opportunity cost of your deposit, rent rises over time, and the lifestyle value of owning. Treat the result as a financial sketch, not the whole decision.
Why is interest the main cost, not the whole repayment?
Because the principal portion of a repayment builds your equity, it is money moved from one pocket to another, not lost. Only interest and costs are truly spent.