Compare your rent with the cost of buying a similar home using this mortgage vs rent calculator. It estimates future home equity alongside the invested balance you might build while renting. It does not include every buying cost or tell you whether a bank will approve the mortgage.
Start with properties you would actually choose and a repayment your budget can carry. For a fuller explanation of the model, use our renting vs buying guide.
How to use this rent vs buy calculator
Enter your rent, its frequency and the number of years to compare. Then enter the purchase price, deposit and mortgage rate. Use an example rate you could realistically qualify for, and test a higher rate as well.
The result compares estimated home equity with the savings and investments you could build while renting. The model assumes you invest the cash you would otherwise use for a deposit, plus any annual saving from renting. If you would spend those savings, the displayed investment balance will not describe your plan.
The rate and comparison period can be changed. In this version, the loan term is 30 years, property growth is 4% a year, rent growth is 3%, the maintenance allowance is 1% of projected property value and investment return is 5%. Those growth and return assumptions are fixed in the widget, not forecasts.
The tool leaves out stamp duty, legal and registration fees, lenders mortgage insurance (LMI) and selling costs. It does not separately price rates, insurance, strata levies, investment tax or investment fees. These omissions matter most when the result is close or you plan to move soon.
The real cost comparison: renting vs buying
Compare both the cash you need each month and the assets and debts you could have later. A buyer can build equity while still struggling with monthly repayments. A renter can invest savings rather than building equity in the home they occupy.
What buying actually costs
Allow for the loan repayment, council rates, building insurance, maintenance and any body corporate levies. For an apartment, read the levy notices, the fund balance set aside for future repairs and records of planned work rather than relying on a generic percentage.
Separately allow for duty, conveyancing, registration, inspections, lender fees and any LMI or alternative premium. Get figures for the actual property and check which costs apply to you. Our deposit calculator, stamp duty guide and buying-cost guide help organise the budget.
If you may sell during the comparison period, add agent fees, marketing, legal work and any loan exit or break costs. Future sale proceeds are not the same as the property's headline value.
What renting actually costs
Include rent, likely increases, moving expenses and any lease-break costs. Also allow for the cash tied up in your rental bond. Tenancy rules govern responsibilities and charges; renting does not mean you can move without cost or notice.
Rent pays for housing. Interest and ownership expenses also pay for services you do not recover as equity. Calling one option dead money is less useful than comparing the actual costs and what you would do with spare cash.
How buying builds equity, and why that matters
Principal and interest repayments cover interest and reduce the debt. If the property value is unchanged, principal reduction increases equity. An interest-only payment does not reduce principal, and this calculator does not model an interest-only period.
A higher property value can increase equity further; a fall can reduce it. Use our equity calculator to distinguish total equity from the amount you may be able to borrow against. Accessing equity through another loan creates additional debt and repayments.
A renter may retain more cash to invest. The return and tax depend on the investment and whether the money stays invested. Moneysmart's investing guide explains the role of timeframe and risk.
How long until buying costs less than renting?
The time needed for buying to come out ahead depends on the price, rent, rates, growth and transaction costs, as well as how long you keep the home.
The calculator's break-even indicator compares projected home equity with the renting investment balance under its assumptions. It does not show when a real purchase and sale would recover all costs. A blank indicator is not proof the balances never cross, and a neutral result means the modelled difference is less than $10,000.
Test a shorter stay and a higher loan rate. If you need different property or investment growth assumptions, arrange a fuller comparison because this widget does not let you change those inputs.
A worked example: renting vs buying a $650,000 Brisbane unit
Suppose the unit costs $650,000 and a similar rental costs $560 a week. A 10% deposit is $65,000, leaving a $585,000 loan before any financed costs.
| Monthly budget item | Hypothetical amount |
|---|---|
| Rent, using $560 x 52 / 12 | $2,427 |
| Mortgage at 6% over 30 years, principal and interest | $3,507 |
| Mortgage payment above rent | $1,080 |
The mortgage figure excludes ownership costs and any LMI added to the loan. Part of it reduces debt; the whole payment still has to fit your cash flow. The $65,000 contribution also excludes cash needed for buying costs and reserves.
An eligible Queensland first home buyer of an established home at this value may pay $0 duty. Confirm all conditions; it is not a zero-cost purchase. A suitable scheme or waiver may change LMI treatment, but a 10% deposit alone does not automatically avoid LMI.
The example rate is not a current offer. Check the actual property, finance and costs before deciding that the monthly difference makes either option better.
When renting makes more sense
Renting can suit a short or uncertain stay, a location you cannot comfortably afford to buy in, or a period when you need flexible access to savings. Buying can suit a stable plan when the property and full ownership budget fit your needs.
A longer stay spreads transaction costs over more years, but does not guarantee a profit. Consider the condition of the building and your ability to manage a change in income as well as the calculator result.
If your deposit needs more time, use our saving while renting guide. If buying looks workable, the first home buyer guide explains the next steps.
How government schemes change the numbers for first home buyers
Australian Government 5% Deposit Scheme
Eligible buyers can apply through a participating lender with a minimum 5% deposit without LMI. Eligible single parents or legal guardians may qualify with a minimum 2% deposit. No income caps or annual place limits apply, but property-price caps, ownership, residence, citizenship or permanent-residency and lending conditions still matter.
The government guarantee supports the lender. It does not turn your 5% cash contribution into 20% cash or pay down the other 15% of your loan. You must afford the full borrowing. Read our 5% Deposit Scheme guide and the official scheme FAQs.
Queensland stamp duty concessions
Eligible established first homes up to $700,000 attract $0 duty. The first home concession reduces above that and ends at $800,000. Qualifying new first homes and vacant land have no value cap on the full concession for contracts from 1 May 2025.
For transactions from 1 August 2026, claimants must be Australian citizens, permanent residents or specified foreign retirees, alongside the other conditions. Previous ownership and occupation rules also matter. Check our Queensland duty guide against the official rules for the contract.
Queensland First Home Owner Grant
The $30,000 grant continues for eligible contracts from 1 July 2026. It applies to eligible new homes valued below $750,000, with applicant and residence conditions; established homes do not qualify.
Grant and duty eligibility are separate checks. Confirm payment timing before treating the grant as money available for a contract deposit. QRO's budget update confirms continuation of the $30,000 amount.
First Home Super Saver Scheme (FHSS)
FHSS can allow eligible voluntary super contributions to be released towards a first home, subject to contribution, release and property conditions. It is not permission to withdraw your entire super balance. Check the determination and release process before committing to a contract. See the official FHSS guide.
The calculator does not automatically apply any of these schemes. Add only a confirmed benefit to your separate purchase budget, without counting it twice.
Rentvesting
Rentvesting means renting the home you live in while owning an investment property elsewhere. It needs a separate model for rent received, vacancy, investment costs, finance and tax.
This calculator compares renting with buying your own home. It is not a rentvesting calculator. Owner-occupier schemes and grants should not be assumed available for an investment purchase. Our rentvesting guide covers that different decision.
Rent vs buy FAQs
Is it cheaper to buy or rent in Australia right now?
There is no national answer for every household. Compare a similar property, your actual deposit and loan terms, ownership costs and the time you expect to stay. Future values and investment returns are uncertain.
How long until buying beats renting financially?
It depends on the inputs and costs. The model's crossover excludes several buying and selling expenses, so it is not a recommended sale date or a guaranteed minimum holding period.
Duty, registration, legal work, inspections, lender costs and any LMI sit alongside the deposit. Rates, insurance, maintenance and strata expenses affect the ongoing budget. Obtain quotes for your property.
Is rent really dead money?
Rent pays for a place to live. Buying has unrecoverable costs too, while principal repayments can build equity. A renter may build investments with money that would otherwise go into a purchase.
Should I buy or keep renting in Brisbane?
Start with your plans, comfortable repayments and cash left after costs. Scheme eligibility can help with entry costs, but it does not establish that buying fits your income or that the property will grow in value.
How much deposit do I actually need?
Can I use super to buy a first home?
FHSS has a specific process for eligible voluntary contributions. It is different from withdrawing ordinary compulsory super savings. Check eligibility and release timing with the official guidance.
How big is the Queensland First Home Owner Grant?
It remains $30,000 for eligible new-home contracts from 1 July 2026, with a home-value limit below $750,000 and other conditions. The grant is separate from duty concessions and the federal deposit guarantee.
Can a lender approve me if rent is similar to the mortgage repayment?
Talk through your purchase budget
Bring the rent for a comparable property, the purchase price you are considering and your available savings. We can check borrowing options and buying costs so you have a realistic budget to compare with staying in your rental.
Request a free assessment or call 1300 088 065.
References
Information checked 12 September 2026. Calculator assumptions and example rates are not forecasts.
- Moneysmart: buying a house
- Moneysmart: mortgage calculator
- Moneysmart: investing plan
- Australian Government: deposit scheme FAQs
- Australian Government: FHSS
- QRO: continued $30,000 grant
- Queensland Government: grant conditions
- QRO: first home concession
- QRO: first home new home concession
- QRO: vacant first home land