Rent vs Buy calculator
A proper comparison: rents that rise every year, property that grows in value, and a renter who invests the deposit instead. See which path leaves you wealthier, and when the lines cross.
The renter starts by investing the deposit and upfront costs, then banks (or draws down) the monthly difference between the buyer's outgoings and the rent.
Net wealth over time: buying vs renting
Buying usually starts behind (stamp duty and costs are sunk on day one) and pulls ahead as equity compounds while rent keeps rising. The dot marks the crossover.
Estimate only. Assumes constant rates and growth, rent rising once a year, and the renter reliably investing the deposit and any monthly difference. Excludes selling costs, tax on investment earnings, and the capital gains tax exemption on your own home (which favours buying). Results are not financial advice.
Why the honest comparison needs growth rates
Simple rent-vs-buy comparisons freeze today's rent against today's mortgage and call it a draw. Real life is not frozen: rent compounds every year forever, while a principal-and-interest mortgage is finite and builds equity with every payment. Property growth compounds on the full property value, not just your deposit, which is why modest growth assumptions still produce large equity numbers.
The fair fight is the one this calculator runs: a disciplined renter who invests the deposit and every dollar saved, against a buyer whose costs are front-loaded but whose housing cost is capped. Change the growth and inflation assumptions above and watch how the answer moves; that sensitivity is the real lesson.
Hear from our happy homeowners.
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