Net housing equity, investments and cash.
THE HOME DECISION, IN PERSPECTIVE
Rent or buy?
Compare the whole picture.
A home is more than an investment. But the numbers matter. Compare buying with renting and investing, using the same starting money and monthly resources.
Two paths.
A fair comparison.
THE SAME MONEY. TWO POSSIBLE PATHS.
Scenario comparison...
Results ↓AFTER 20 YEARS
Invested starting capital, savings and cash.
...
Where each path could lead.
FIRST TIME BUYING MATCHES OR EXCEEDS RENTING
...
This is the first modelled crossing, not a promise that an advantage lasts. The chart and sensitivity tests show the wider picture.
KEEP BOTH SIDES OF THE DECISION
Your Rent vs Buy Wealth Comparison.
A personalised PDF with the funding comparison, mortgage payments, annual milestones, investment growth, property equity and sensitivity tests.
Where the money goes at the selected year
| Measure | Buying | Renting |
|---|
CHANGE THE ASSUMPTION
Test the investment return.
5%, 7% and 9% apply to both investment portfolios. All other assumptions stay the same. These are scenarios, not promised returns.
Every year of the comparison
| Year | Mortgage | Net home equity | Buy total | Rent total | Buy minus rent |
|---|
COMPARE LIKE WITH LIKE
More than rent
against a mortgage.
Comparing rent with a mortgage payment alone misses the deposit, purchase costs, maintenance, property growth and the money a renter could invest. It also misses the savings a buyer could invest when ownership becomes cheaper.
This rent vs buy calculator follows both paths month by month. It gives each path the same starting capital and the same monthly budget, then separates money spent from money retained as equity, investments or cash.
The result depends on the assumptions. It is not a recommendation to buy, rent or invest, and it does not assess what you can afford.
UNDERSTAND THE COMPARISON
Rent vs buy,
explained.
How does the calculator make the comparison fair?
Both paths start with the deposit, purchase tax, buying fees and any extra investments you enter. The buyer spends the acquisition money and keeps the extra investments. The renter invests all the starting capital. Each month both receive the larger housing bill plus the same regular investment amount. The cheaper path retains the difference, either invested or as cash.
Does the buyer build an investment portfolio too?
Yes. Both paths retain the extra starting investments and receive the regular monthly contribution. If renting becomes more expensive than ownership, the buyer also retains that monthly difference. This can become significant after the mortgage is paid off.
How is home equity calculated?
Home value minus the remaining repayment mortgage gives gross equity. We then subtract estimated selling costs to show net housing equity. Adding the buyer's separate investments and cash gives total net wealth. A negative equity figure is possible.
What happens if I do not invest the difference?
The cheaper path holds the monthly saving as cash at zero interest. The saving is still included in total wealth. This keeps both paths equally funded without pretending uninvested money receives market returns.
Is stamp duty calculated automatically?
No. Enter the applicable purchase tax after checking the Stamp Duty Calculator or your conveyancer. The example tax is simply an editable assumption. Buyer status, jurisdiction, reliefs and special transactions can change the amount.
What is excluded?
Taxes on investments or disposal, investment fees, rate changes, mortgage overpayments, refinancing, moving, rent deposits and common living costs. Maintenance starts as a percentage of the initial price, then rises with owner cost inflation. Returns are constant illustrations and actual outcomes can differ substantially.
TURN THE COMPARISON INTO A PLAN
Your first or next move.
With a clearer picture.
Explore Starter Club for property education, personal planning and community.
Explore Starter Club ↗Educational comparison only. Figures are before investment fees and tax. Home ownership and investments carry risk. No personal financial, tax or mortgage advice. See our disclaimer.