Property · Long-term
Rent vs buy calculator (Australia)
Compare the 10-year net wealth of buying a home with a mortgage vs renting and investing your deposit. Includes stamp duty, maintenance and the opportunity cost of your deposit.
Net wealth over time
Related calculators
Get a precise upfront cost with our stamp duty calculator, model your repayments with the mortgage repayment calculator, or see how the invested deposit grows with compound interest.
Frequently asked questions
Is it cheaper to rent or buy in Australia?
In the short term renting is almost always cheaper because you avoid stamp duty, mortgage interest and maintenance. Over 7–10+ years, buying typically wins if property growth exceeds 3–4% per year and you stay put — but it depends heavily on price, rent, and what you'd otherwise invest.
What's a fair assumption for property growth?
Long-run Australian capital-city growth has been roughly 5–6% per year nominal, but the last decade was higher. Many planners model 3–4% real (after inflation) to stay conservative.
Should I include the deposit's opportunity cost?
Yes — this calculator does. If you rented, that deposit could be invested. We compound it at the return you set, alongside the monthly difference between rent and the cost of owning.
Does this include stamp duty and selling costs?
Yes. Stamp duty is treated as an upfront cost when buying, and a 2.5% agent + marketing cost is subtracted from the sale price at the end of the horizon.
How long do I need to own to break even?
Most analyses put the break-even between 5 and 10 years, depending on price growth, your mortgage rate, and the rent you'd otherwise pay. The chart below shows where the two lines cross for your inputs.
Assumptions
Ignores income tax (no negative gearing modelling), insurance, body corporate fees, and the personal value of housing security. Selling costs of 2.5% are deducted from the sale price each year so the "wealth if I sold today" line is honest.