Rent Vs Buy Calculator
Is now the right time to buy?
A Rovo broker can help you assess your readiness and find the right loan — free & obligation-free.
This calculator provides a simplified comparison. It does not account for stamp duty, maintenance, insurance, strata, council rates, investment returns on savings, or tax. Always seek personalised financial advice. Rovo Finance (NJ IT PTY LTD ABN 67 654 854 378) CCR 570633 of Broker ACL Pty Ltd ACN 681 761 375 (ACL 563763).
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Rent vs buy calculator Australia, which makes more financial sense in 2026?
The rent vs buy debate is one of the most common financial questions Australians face. The answer depends on your specific situation, how long you plan to stay, property growth in your area, your interest rate, and what you’d do with money not tied up in a deposit. Our calculator compares both paths over 5, 10, 15, or 20 years so you can see the numbers clearly before making a decision.
The real cost of renting vs buying
True cost of buying
Mortgage repayments (interest + principal), stamp duty, council rates, strata/body corporate fees, building insurance, maintenance (typically 1% of value per year), property management if renting out. The principal portion builds equity, it’s not “lost” money. The key return is property value growth over time.
True cost of renting
Rent (which typically increases 3–5% per year), contents insurance. Your deposit savings could be invested, historically Australian shares return 9–10% p.a. long-term, though with more volatility than property. Renting provides flexibility: you can move easily, live in areas you couldn’t afford to buy, and avoid maintenance responsibility.
Our calculator simplifies the comparison, it does not model stamp duty, maintenance, rates, or the tax treatment of investment returns on savings. For a detailed analysis of your specific situation, speak with a Rovo Finance broker.
When does buying make more sense?
- You plan to stay in the same area for 7+ years, buying typically overtakes renting after 7–10 years in most Australian markets
- Property growth in your target area is 4%+ per year historically
- Your rent is high relative to mortgage repayments in the same area
- You have a stable income and want certainty over your housing costs
- You value the ability to renovate and make the property your own
- You are eligible for first home buyer grants or the First Home Guarantee Scheme
When does renting make more sense?
- You expect to move within 3–5 years
- Property prices are at a peak and growth is expected to be flat or negative
- You can rent in a location you couldn’t afford to buy, living near work or lifestyle amenities
- Your deposit is small and LMI would significantly add to costs
- You have other high-return investment opportunities for your savings
FAQs
In 2026, the rent vs buy decision varies by suburb and timeframe. Sydney and Melbourne have high price‑to‑rent ratios, making renting cheaper short‑term, but buying often wins over 10+ years due to capital growth. Regional and outer‑suburban areas often favour buying sooner. The First Home Guarantee Scheme has also made buying more accessible with a 5% deposit and no LMI for eligible buyers.
The minimum deposit is 5%, though LMI applies unless you use the First Home Guarantee Scheme or have a guarantor. Most advisors recommend 10–20% including upfront costs like stamp duty and legal fees. Use our calculators to estimate your upfront costs and borrowing power.
Historically, Australian property has grown 5–7% per year nationally. A conservative planning assumption is 3–4%, while the long‑run average is closer to 6–7%. Running the calculator at both 3% and 6% gives a realistic range of outcomes.
The calculator does not include CGT, negative gearing benefits, stamp duty, or tax on investment returns. Owner‑occupiers benefit from the CGT main residence exemption, which the calculator does not fully capture. For detailed tax modelling, speak with a tax professional and a Rovo Finance broker.
NSW first home buyers may access the $10,000 First Home Owner Grant, full stamp duty exemption under $800,000, the First Home Guarantee (5% deposit, no LMI), and the Regional First Home Buyer Guarantee. Combined, these can save $30,000–$50,000+ depending on the property.