Rent vs Buy Calculator Australia
How to Use the Australian Rent vs Buy Calculator
Enter your current weekly rent ($/week), expected annual rent inflation (%), target Australian property purchase price ($), saved deposit ($), state stamp duty & settlement costs ($), mortgage interest rate (% p.a.), and capital growth rate (% p.a.) over a 5 to 30 year comparison period.
Key Australian Property & Opportunity Cost Assumptions
Our model accounts for ongoing homeownership costs—including council rates ($2,500/yr default), building insurance ($1,500/yr default), and annual property maintenance (1.0% of property value)—and compares your projected net property equity against the opportunity cost of investing your deposit and stamp duty in a diversified portfolio.
Worked Australian Example: Renting at $650/wk vs Buying an $850,000 Home
Worked Example ($850,000 Purchase vs $650/wk Rent over 10 Years): With a $170,000 (20%) deposit, $35,000 stamp duty, 6.19% p.a. mortgage rate, and 4.5% p.a. annual capital growth, the property grows to $1,320,024 in 10 years with ~$765,000 in net home equity—accelerating further to over $910,000 in equity when paired with Crown Money’s 13-year principal reduction strategy.
Frequently Asked Questions About Renting vs Buying in Australia
Ready to transition from renting to owning—or want to pay off the home you already own in half the time? Read our Pillar Guide at /guides/how-to-pay-off-your-mortgage-faster-australia or book a free strategy session.
Does the Rent vs Buy Calculator include Australian stamp duty and council rates?
Yes. You can customise state stamp duty, legal/conveyancing costs, annual council and water rates, home building insurance, and ongoing maintenance percentages.
How does paying off the mortgage faster change the Rent vs Buy outcome?
Cutting your home loan term from 30 years to 12–15 years saves hundreds of thousands in non-deductible bank interest, dramatically shifting the net wealth comparison in favour of homeownership.