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Michael Kalinovski

Rent vs Buy Calculator

Compare the financial outcomes of renting versus buying over time to make an informed decision

Property Purchase Details

$

Property purchase price

$

20% of purchase price

%

Current mortgage interest rate

%

Expected annual growth (historical avg ~4-6%)

Rental Details

$

Current weekly rent amount

%

Expected annual rent increase (typically 2-4%)

Holding Period

How long do you plan to stay in the property?

Year by Year Comparison

YearProperty ValueEquityTotal RentDifference
1(Break-even)$832,000$198,943$33,800+$31,143
5$973,322$372,852$179,449+$307,255
10$1,184,195$637,885$387,479+$712,616

Difference: Positive = Buying ahead • Negative = Renting ahead

After 10 Years

Buying Wins

Net Difference

+$712,616

Buying advantage

Buying Net Position

$445,885

Equity built

Renting Net Position

-$266,731

After investments

Break-even Point

Year 1

Buying becomes more advantageous after 1 year

Position Comparison

Buying Position$445,885
Renting Position-$266,731

After 10 Years

Property Value$1,184,195
Total Equity$637,885
Total Rent Paid$387,479

Purchase Summary

Purchase Price$800,000
Deposit (20%)$160,000
Loan Amount$640,000
Est. Stamp Duty (~4%)$32,000
Total Upfront Costs$192,000
Monthly Mortgage$4,045/mo
Weekly Mortgage$934/wk

Rental Summary

Current Weekly Rent$650/wk
Annual Rent (Year 1)$33,800
Rent Increase Rate3% p.a.
Total Rent (10 yrs)$387,479

Key Assumptions:

  • 30-year P&I loan
  • Deposit invested at 5% return if renting
  • Ownership costs: rates, insurance, maintenance included
  • Stamp duty estimated at 4% (NSW rates)
  • Does not include tax benefits or CGT

Ready to Make the Move to Home Ownership?

Let me help you find your perfect property in Sydney's St George area. Whether you're a first home buyer or upgrading, I can guide you through the process.

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