Example result based on the prefilled values.
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$64,684.56
Continue your plan
Useful next calculations
When to use this calculator
- Before buying, renting, refinancing, or reviewing a property investment.
- When you want to compare cash flow, yield, growth, and ownership costs side by side.
- When you need a fast estimate before speaking to an agent, lender, or adviser.
- When you are assessing whether a rental property still makes financial sense after a mortgage rate change.
- When you want to compare the total cost of renting against owning over a five- or ten-year horizon.
A realistic Australia planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Property Purchase Price (A$)
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 — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.
How to read your results
Monthly Cost (Buy)
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Future Property Value
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Equity Built
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Total Upfront Costs
This is the headline outcome of the calculation, but it is most useful when read alongside the supporting metrics below it rather than in isolation. Try changing one input at a time and watching how this total moves to understand which driver has the biggest impact.
Buying Advantage Over Renting
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
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.
- !Forgetting location-specific taxes, fees, eligibility rules or payroll deductions where they apply.
- !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.
- Use the result to prepare better questions for a lender, provider, adviser or employer rather than treating it as a final answer.
Frequently asked
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