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 worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Property Purchase Price (A$) | A$700,000 |
| Deposit (A$) | A$140,000 |
| Mortgage Interest Rate (%) | 6.5% |
| Loan Term (years) | 30 years |
For those figures the calculator returns:
- Monthly cost (buy): A$3,714.58
- Future property value: A$851,657.03
- Equity built: A$327,435.56
- Total upfront costs: A$182,000.00
- Buying advantage over renting: A$64,684.56
Method & assumptions
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.