Buying and renting can each create a very different financial position over time. Enter the property price, deposit, loan terms, rent, ownership costs and future growth assumptions to compare the estimated equity produced by buying with the investment balance that could be built while renting.
A buy versus rent comparison is most useful when both choices begin with the same amount of available cash. This calculator estimates the homeowner’s position after mortgage repayments and selling costs, then compares it with the investment balance a renter could build from the deposit, purchase costs and any ongoing saving from renting.
Enter figures that reflect the property, loan and rental option being considered. The result shows how changes in interest rates, rent, ownership costs, property growth and investment returns can affect the comparison over time.
The default figures provide an immediate example. Replace them with estimates that suit the property and rental alternative being compared.
Estimated difference after 10 years
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Enter valid figures to calculate the comparison.
End Positions
Payments And Costs
How the comparison works: the buyer’s end position is the estimated property value less the remaining loan and selling costs. Mortgage principal is treated as equity rather than as a lost cost.
The renter begins with an investment equal to the buyer’s deposit and purchase costs. Each month, the calculator adds any amount by which mortgage repayments and ownership costs exceed rent, or subtracts the amount when renting is more expensive.
The model assumes the entered interest rate, growth rates and investment return continue throughout the comparison period. It does not calculate tax, government concessions, investment fees, refinancing costs, rent bonds, moving costs or changes in loan rates unless those amounts are incorporated into the inputs.
This calculator provides indicative estimates for general information only. Results depend on the figures and assumptions entered and may not include every cost, tax consequence, market change or personal consideration relevant to buying or renting. It does not constitute financial, lending, tax, legal or property advice. Check important figures independently and consider obtaining appropriately qualified professional advice before making a financial decision.
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Disclaimer: Every effort has been made to ensure the accuracy of the information provided, but we make no guarantees regarding its completeness or reliability. The data is presented for general informational purposes only and does not constitute financial, investment, or legal advice. We are not liable for any errors, omissions, or consequences arising from its use. Users should verify details with relevant sources and seek professional advice where appropriate for the most accurate and up-to-date guidance.
