Continue your plan
Useful next calculations
When to use this calculator
- Before buying, renting, refinancing or reviewing a property investment.
- When you want to compare cash flow, tax, yield or ownership costs.
- When you need a fast estimate before speaking to an agent, lender or adviser.
- When you want to see how a rate or price change moves the result.
A realistic Australia planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
| Input | Value |
|---|---|
| Property Purchase Price (A$) | A$700,000 |
| Deposit (A$) | A$140,000 |
| Mortgage Interest Rate (%) | A$560,000 |
| Loan Term (years) | A$560,000 |
After entering these figures, review monthly cost (buy), future property value and equity built together rather than in isolation. Then rerun the tool with one input adjusted.
How to read your results
Monthly Cost (Buy)
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Future Property Value
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Equity Built
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Total Upfront Costs
The headline outcome of this calculation. It is most useful when read alongside the supporting metrics rather than in isolation.
Buying Advantage Over Renting
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Method & assumptionsAuthoritative sources
This calculator compares the net financial cost of buying versus renting an Australian residential property over 5 to 20 years. The buying cost is calculated as total upfront costs (deposit plus an estimated 4% stamp duty and 2% conveyancing and inspection fees), plus monthly mortgage repayments and estimated council rates (0.3% of property value per year), minus the equity built through capital growth and principal repayment over the analysis period. Renting costs are your monthly rent escalated at a 3% annual growth rate to approximate typical rent inflation in Australian cities.
Important limitations: stamp duty is estimated at a flat 4% nationally — actual rates vary significantly by state, property value, and buyer type (first home buyers may pay zero). The calculator does not include LMI, strata fees, maintenance, or selling costs, all of which increase the true cost of buying. Property growth is assumed constant at your input rate, which will not reflect real market cycles. Use this tool to understand relative order of magnitude and break-even timeframes, then verify figures with a mortgage broker and licensed financial adviser before making a purchasing decision.
Common mistakes
- !Using an assumption that is not supported by a current local quote, bill, statement or official source.
- !Treating a generic estimate as a lender, provider, payroll or tax authority decision.
- !Mixing monthly and annual inputs without converting them consistently.
- !Testing only one scenario instead of checking how a cautious assumption changes the result.
What to do next
- Run a second scenario with a cautious assumption so you can see the downside clearly.
- Compare the result with the related calculators below before making a decision.
- Check current local rules, eligibility and provider terms before applying or committing money.
- Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.
Frequently asked
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