Does the calculator include stamp duty and LMI?

Yes. Stamp duty is automatically calculated based on your state and First Home Buyer status, included in buying costs. LMI is calculated based on the loan-to-value ratio (LVR) or can be manually overridden.

How is CGT applied for buying vs renting?

No CGT on the main residence when selling. For the investing side (shares), CGT is applied with 50% discount for long-held assets.

Why no tax deductions for buying?

For owner-occupiers in Australia, mortgage interest and ownership costs are not tax-deductible, unlike investment properties.

How does rent growth affect the results?

Rent increases annually by the growth rate, impacting the monthly difference invested in shares.

What’s a realistic property appreciation or rent growth?

Historical averages in Australia are ~6–7% for property, 2–3% for rent growth. Adjust based on location.

Why does LMI affect the purchase price?

LMI is added to the loan, increasing total borrowing. Price is back-calculated for consistency.

Buy vs Rent Calculator — 2025

Compare buying a home to live in vs renting and investing the difference in shares. Includes CGT, stamp duty, and tax.

Key Metrics

Total Cash Upfront: $0 ?

Buy Price: $0 ?

LVR: 0% ?

Monthly Repayment: $0 ?

Performance

Year-by-Year Breakdown

🔒 Pro features are locked. Unlock Tepuy+ for extra results, CSV export, and scenario saving.

Buy to Live In vs Rent and Invest in Australia

This free buy vs rent calculator for Australia lets you compare the long-term financial outcomes of buying a home to live in versus renting a similar property and investing the savings in shares.

It accounts for Australian-specific factors like stamp duty, LMI, CGT exemption on main residence, and no tax deductions for owner-occupiers. Use it to see if buying or renting builds more wealth over time.

How the Buy vs Rent Calculator Works

This calculator compares buying a home to live in (owner-occupier) versus renting and investing the upfront costs and monthly savings in shares. It models buying costs (stamp duty, LMI), mortgage payments, ownership costs, and property growth, alongside renting costs and share market returns.

Quick Start

Enter your loan amount, downpayment, and buying costs (auto-filled with stamp duty for your state).
Set LMI (Lenders Mortgage Insurance) manually or let it calculate automatically based on loan-to-value ratio (LVR).
Adjust property appreciation, weekly rent (auto-filled based on property type yield), and rent growth.
Specify your tax bracket at sale and years to retirement.
Hit Calculate to see year-by-year cash flows, net wealth, and key metrics like ROI and break-even points.

What You Control

Loan and Downpayment: The mortgage amount and deposit percentage, which determine the property price and LMI.
Buying Costs: Includes stamp duty (state-specific, with First Home Buyer concessions), transfer fees, and other costs.
LMI: Lenders Mortgage Insurance, either auto-calculated or manually overridden.
Property Type: Sets default appreciation and rental yield (e.g., 3% for houses, 4% for apartments).
Interest-Only Loan: Option to specify years of interest-only payments and post-IO interest rate (Pro feature).
Rent and Growth: Weekly rent (auto-filled based on yield) and annual rent growth rate.
Investor Profile: Your age, years to retirement, and tax bracket at sale for CGT on shares.
Market Returns: Expected annual growth for property and shares.

Key Outputs

Total Cash Upfront: Deposit plus buying costs.
Buy Price: Estimated property price, accounting for LMI.
LVR: Loan-to-Value Ratio, impacting LMI.
Monthly Repayment: Principal and interest (or interest-only if enabled).
ROI: Annualized return on investment for buying vs renting.
Difference at Retirement: Net wealth from renting+investing minus buying.
Break-Even Year: When renting+investing surpasses buying (if applicable).
NPV: Net present value of cash flows, discounted at 5%.
Year-by-Year Breakdown: Detailed table of property value, equity, cash flows, and share portfolio growth.

Assumptions and Notes

Buying: No CGT on main residence; no tax deductions for mortgage interest or ownership costs (owner-occupier rules).
Renting+Investing: Savings from lower housing costs are invested in shares, with CGT applied at 50% discount on sale.
Property Type: Affects appreciation and rental yield (e.g., houses: 6.5% appreciation, 3% yield; apartments: 5.5% appreciation, 4% yield).
Cash Flow: Negative cash flows for renting are covered by selling shares; positive cash flows are reinvested.
Pro Features: Include interest-only loans, scenario saving, CSV export, and net cash view.

Disclaimer: This calculator provides estimates based on your inputs and assumptions. Consult a financial advisor for personalized advice. Data is not saved unless you use the Pro save feature.