Rent vs buy
“Rent money is dead money” — is it? This runs the fair comparison: if you rent, you invest the deposit instead. Put in your own numbers and find the breakeven.
Advanced assumptions
The renter invests the deposit + buying costs, plus any month where renting is cheaper, at the “investing return” above. That's the fair comparison.
This is a generic financial calculator. It produces estimates only, based on the assumptions below and the figures you enter. It is general information — not personal or financial product advice— and does not take into account your objectives, financial situation or needs. Consider whether it's right for you and seek advice from a licensed professional before making any decision. MOMONEYMOFREE does not hold an Australian Financial Services Licence and does not recommend any specific financial product.
Assumptions used →
- Fair comparison: both paths use the same money. The renter invests the deposit + buying costs, plus any month renting is cheaper, at the investing-return rate you set.
- Buyer's net worth = sale price (less selling costs) − loan balance + any side investments. Renter's = invested portfolio.
- Capital growth, investment return and rent growth are assumptions, not forecasts — results are highly sensitive to them. Try a range.
- Buying costs default to 5% (stamp duty + conveyancing — varies a lot by state and first-home concessions); owning costs 1% p.a.; selling costs 2.5%.
- Ignores tax (CGT exemption on a main residence, negative gearing, tax on investment returns), rentvesting, and changes in circumstances.
- Calculated in your browser; nothing entered is stored.
Nothing entered here is sent to or stored on our servers — it's all calculated in your browser.
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