Property calculator
Rent vs Buy Calculator Australia 2025
Compare the total wealth outcome of buying a home versus renting and investing the difference over 5-30 years. Includes state-specific stamp duty, mortgage costs, and investment portfolio projection.
Wealth comparison Break-even year Stamp duty incl.
01 —INPUTS
Property
For stamp duty calculation
Ownership Costs
$0 for house
Renting
Assumptions
Long-run median ~5%
CPI-aligned ~3%
Renter's portfolio return (e.g. index fund ~7%)
02 —RESULTS
Enter a property price and weekly rent to compare buying vs renting.
FAQ
Is it cheaper to rent or buy in Australia in 2025?
It depends on your city, property price, interest rates, and how long you plan to stay. In most capital cities, monthly mortgage repayments exceed equivalent rent in the early years. However, buying builds equity through loan repayment and property growth, while renting frees up capital to invest elsewhere.
How does the calculator compare buying and renting?
It projects two paths year-by-year. The buying path tracks your home equity (property value minus loan balance). The renting path assumes you invest the money you would have spent on a deposit, stamp duty, and legal fees, plus any annual savings from cheaper rent.
What costs are included in the buying path?
Upfront: deposit, stamp duty (calculated by state), and $2,500 in legal fees. Ongoing: mortgage repayments (principal & interest), council rates, home insurance, maintenance, and strata fees.
What is the break-even year?
The break-even year is when buying wealth (home equity) first exceeds renting wealth (investment portfolio). Before this point, you would have been better off financially renting and investing.
Does stamp duty make a big difference?
Yes. Stamp duty is a major upfront cost that the renter avoids and can invest instead. In NSW, stamp duty on an $800,000 property is over $30,000. This amount, invested at 7% for 10 years, grows to over $59,000.
Does this calculator include capital gains tax?
No. Your primary residence is CGT-exempt in Australia, so the buying path has no CGT. The renting path's investment portfolio would incur CGT on sale, but this varies greatly depending on your income and holding period.
Tax Accuracy & Sources
This calculator uses current stamp duty rates by state. Property growth, rent growth, and investment returns are assumptions — actual results will vary. Does not account for capital gains tax on the investment portfolio, rental income tax implications, or changes in interest rates over the holding period.