Skip to content
Australia · FY2025

Rent vs Buy Calculator (Australia)

Compare renting vs buying a home in Australia. Includes stamp duty, buying costs, mortgage repayments, property growth, and equity built over 5 to 20 years.

Last reviewed: 24 July 2025Source: HMRC / Welsh Revenue / Revenue Scotland
Rent vs Buy Calculator (Australia) · AUProperty & Housing

Rates & sources

SDLT/LTT/LBTT bands vary between England, Wales, Scotland and Northern Ireland. Use the appropriate calculator.

Source: HMRC / Welsh Revenue / Revenue Scotland — figures refreshed at the start of each tax year.

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

  • !Comparing rent and ownership costs without including taxes, fees, and maintenance.
  • !Using purchase price alone without testing the impact of financing or vacancy assumptions.
  • !Relying on yield or growth in isolation instead of reviewing the full property case.
  • !Forgetting Stamp Duty Land Tax (or its Scottish and Welsh equivalents), which can add thousands to the true cost of purchase.
  • !Using optimistic rental growth figures without also testing a flat or declining rent scenario to check downside resilience.

What to do next

  • Run a second scenario with a higher rate or lower rental yield to check downside resilience.
  • Compare the result with a buy-versus-rent or stamp duty calculator before making an offer.
  • Use the related guides below to understand agent fees, legal costs, and ongoing maintenance budgets.
  • If you are assessing a buy-to-let, check the gross yield against the net yield after mortgage interest, voids, and management fees.
  • Note down the key figures from this scenario to share with your solicitor or mortgage broker so they are working from the same assumptions.

Frequently asked

The calculator compares the total financial cost of buying versus renting over your chosen period. The buying cost includes upfront costs (deposit, stamp duty at ~4%, and buying costs at ~2%), monthly mortgage repayments, and council rates, offset by the equity you build through capital growth and loan repayment. The renting cost is your monthly rent escalated at 3% per year. A positive ‘buying advantage’ means buying is financially better over the chosen timeframe.

Use arrow keys to navigate items, Enter or Space to expand/collapse.