Rent vs Buy Calculator Australia 2026
See exactly when buying overtakes renting — with real numbers, not guesswork
Models both paths with compound interest, opportunity cost, P&I amortisation, state-specific stamp duty, and break-even analysis. City presets for Sydney, Melbourne, Brisbane, Perth, Adelaide and Hobart.
City Preset
Your Numbers
Note: Owner-occupied property. No CGT on sale. Renter invests deposit + upfront costs into shares. This calculator is educational — consult a licensed financial adviser before making property decisions.
Adjust the sliders to see your results.
How the Calculator Works
Choose Your City
Pick a city preset to load calibrated 2026 values for property prices, rents, growth rates, and council rates.
Adjust Your Numbers
Fine-tune property value, rent, deposit size, interest rate, and analysis period to match your situation.
Compare Both Paths
See net wealth over time for both buyer and renter, the break-even year, and which option wins on your timeline.
What This Calculator Models (2026)
- ✓ Buyer path: P&I amortisation, stamp duty, council rates, maintenance (tracks property value), insurance, selling costs
- ✓ Renter path: Deposit + stamp duty + legal costs invested at day 0; monthly surplus invested in shares each month
- ✓ State-specific stamp duty: NSW, VIC, QLD, WA, SA and TAS rates for owner-occupiers
- ✓ CGT exempt: Owner-occupied property sale is CGT-free — the model fully accounts for this structural advantage
- ✓ Break-even year: Tells you exactly when buying wealth first exceeds renter wealth
- ✓ City presets: Sydney, Melbourne, Brisbane, Perth, Adelaide, Hobart — calibrated 2026 median values
- ✓ Advanced controls: Capital growth, rent inflation, share market return, maintenance, insurance, selling costs all adjustable
Calculator FAQs
Is it better to rent or buy a home in Australia?▼
It depends on your city, time horizon, and assumptions about capital growth vs. share market returns. In most Australian capitals, buying wins over 15–20 years due to capital growth and zero CGT on owner-occupied property. However, renting and investing the deposit can outperform in shorter time horizons or when capital growth is low relative to share market returns.
What is the break-even point for buying vs renting?▼
The break-even year is when your net wealth as a buyer first exceeds your net wealth as a renter (deposit invested in shares plus monthly surplus). In Sydney with a 20% deposit, typical break-even is Year 7–12. In high-growth markets like Perth and Brisbane, it can be earlier.
How does the calculator model the renter's investment?▼
The renter invests the entire initial outlay (deposit + stamp duty + legal costs) into a diversified share portfolio on day 0. Each month, the renter also invests the difference between the buyer's total housing costs and rent. The portfolio compounds at the configured share market return rate.
What stamp duty does this calculator use?▼
State-specific rates for each city: NSW for Sydney, VIC for Melbourne, QLD for Brisbane, WA for Perth, SA for Adelaide, TAS for Hobart. Approximate owner-occupier residential rates for 2025–26. Use our Stamp Duty Calculator for a precise estimate.
Why does the calculator assume no capital gains tax?▼
This models your principal place of residence (PPOR). In Australia, your primary home is exempt from CGT on sale. This is a significant structural advantage for owner-occupiers — the model fully accounts for it.
What capital growth rate should I use?▼
Australia's long-run average is approximately 6–7% nationally. City presets use calibrated 2026 values. For conservative planning, use 3–5%. Results are highly sensitive to this assumption — try the advanced sliders to see the impact.
Is renting a waste of money?▼
No — renting is not a waste of money if buying leaves you worse off. By investing the deposit in a diversified portfolio, renters can build significant wealth. The key question is whether property capital growth or share market returns are higher over your time horizon.
How much deposit do I need to buy a home in Australia?▼
You typically need 5–20% deposit. A 20% deposit avoids Lenders Mortgage Insurance (LMI). First Home Buyers can access the First Home Guarantee with just 5% deposit. Use the deposit slider to see how different deposit sizes affect your long-term wealth.
Want personalised property advice?
Our advisors can help you run the numbers for your specific situation — whether you're buying your first home or growing a portfolio.
Or call 02 9099 5636
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