Buy vs Rent Calculator
Compare the total cost of buying vs renting the same property over a chosen time horizon.
About this calculator
The Buy vs Rent Calculator on NumberCals is a free, mobile-friendly tool for anyone needing to compare the total cost of buying vs renting the same property over a chosen time horizon. Enter your values in the form below and the result is computed instantly — no sign-up, no installation, no waiting.
Formula used
Net Buy Cost vs (Rent Cost − Investment Growth of Deposit)
What you'll need
- Property Price (e.g. 750000)
- Deposit (incl. buying costs you'd pay upfront) (e.g. 150000)
- Mortgage Rate (% p.a.) (e.g. 6.25)
- Loan Term (years) (e.g. 30)
- Buying Costs (% of price, stamp duty + legal) (e.g. 5)
- Ongoing Costs (% of price per year) (e.g. 1.5)
- Expected Capital Growth (% p.a.) (e.g. 4)
- Weekly Rent for Equivalent Property (e.g. 650)
- Annual Rent Growth (%) (e.g. 3)
- Alternative Investment Return (% p.a.) (e.g. 7)
- Comparison Horizon (years) (e.g. 10)
What you'll get
- Net Cost — Buying
- Net Cost — Renting
- Difference (rent − buy)
- Better Option
- Approx Break-even Year
Frequently Asked Questions
Why doesn't this say 'always buy'? +
Because owning costs money too — interest, rates, maintenance, opportunity cost on the deposit. Over short horizons (under ~5 years), renting often wins purely on cost. The crossover depends heavily on assumed capital growth and the alternative investment return.
What numbers should I use for capital growth? +
Long-run Australian capital city averages are around 5–7% nominal, but with high variance. Use a conservative number (3–4%) for stress testing.