Calculator
Rent vs buy calculator
A simplified comparison of renting and buying over time. Every assumption is yours to change.
Estimate only, using the figures you enter. Not a quote or offer of credit, and it does not consider your objectives, financial situation or needs. Loan products have a comparison rate, fees and charges.
How this works
- Results are in future dollars, not adjusted for inflation. To allow for inflation, lower the investment return and home growth.
- The loan is the purchase price plus upfront costs, less your savings.
- Buying: the home's value less the loan balance. Renting: your savings and the return on them, plus each year what owning would have cost (repayments and ongoing costs) less the rent.
- Investment returns, rent and cost increases and home growth are calculated yearly. Loan repayments are monthly, principal and interest. A year of rent is 52 weeks or 26 fortnights.
- Tax is not included, such as tax on investment returns or capital gains.
Worth a read.
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