Long-term wealth comparison with Australian assumptions
Rent vs Buy Calculator Australia (2026)
Compare buying a home versus renting and investing the difference across time. This calculator focuses on net wealth outcomes using modeled mortgage amortization, ownership costs, rent growth, and investment compounding.
How rent vs buy works
The buying path models principal-and-interest repayments, annual property growth, ownership costs, and remaining loan balance to estimate homeowner equity over time. The renting path assumes your upfront buying cash is invested, then adds or subtracts the annual cashflow difference between buying and renting before compounding at your investment return assumption.
Hidden costs of buying
Purchase decisions are often judged on mortgage repayment alone, but total cost includes stamp duty, legal fees, maintenance, council rates, insurance, and in some cases strata/body corporate levies. These costs materially affect long-term net wealth and should be considered before assuming buying is always superior.
You can model transfer duty using the stamp duty calculator and feed that into this comparison.
Opportunity cost explanation
Opportunity cost is the return you give up by allocating capital to one path over another. In this model, the renter invests the buyer's upfront costs and annual cashflow differences. If investment returns are strong or property growth is weak, renting may build more liquid net wealth under the selected assumptions.
Break-even analysis
The break-even year is the first year in which buying net wealth matches or exceeds renting net wealth. It is scenario-dependent and can shift with changes to interest rates, rent inflation, growth assumptions, and holding period.
Frequently asked questions
What does this calculator compare?
It compares long-term net wealth outcomes between buying and renting + investing under your assumptions.
Does this include ownership costs?
Yes. Stamp duty, legal fees, and annual ownership costs are included in the buying pathway.
Is this financial advice?
No. It is a decision-support estimate only and should be paired with professional advice for major decisions.
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Jump between calculators to plan your full purchase picture.
- Mortgage CalculatorRepayments, stress test, amortisation, and scenarios.
- Stamp Duty NSWTransfer duty, first home buyer relief, and total cost.
- Borrowing PowerIncome, expenses, APRA buffer, and loan sizing.
- Rent vs BuyLong-term net wealth comparison across buy vs rent scenarios.
- Negative Gearing ChangesYearly holding cost under illustrative proposed negative gearing rules.