Buy vs Rent — 7-Year Financial Comparison

7 years is a common owner-occupier holding window in Australia. The calculator sums deposit, repayments, holding costs, stamp duty and 7-year property value for buying; on the rent side, the surplus is compounded at 4% p.a. to derive a net cost.

s*(1+s)o/((1+s)o-1)}function n(){for(var d,u,m,p,g,O,j=+e.querySelector("[data-f=price]").value,i=+e.querySelector("[data-f=deposit]").value,A=+e.querySelector("[data-f=rate]").value,_=+e.querySelector("[data-f=years]").value,S=+e.querySelector("[data-f=rent]").value,z=+e.querySelector("[data-f=growth]").value/100,F=+e.querySelector("[data-f=rentGrowth]").value/100,E=+e.querySelector("[data-f=upkeep]").value,n=7,h=Math.max(0,j-i),T=j.04,f=s(h,A,_),y=f12n,k=En,r=T+2500,a=A/100/12,c=_12,w=n12,M=a===0?h(1-w/c):h((1+a)**c-(1+a)**w)/((1+a)c-1),l=j(1+z)n,N=l.025,x=l-N-M,C=y+k+r+i-x,D=S52/12,b=0,o=i+r,v=0;v<n;v++)for(g=D(1+F)*v,p=0;p<12;p++)o=o(1+.04/12),m=f+E/12-g,m>0&&(o+=m),b+=g;u=b-(o-(i+r)),d=u-C,O=d>0?"Buying":"Renting",e.querySelector("[data-out]").innerHTML='

Better after 7 years: '+O+'

Difference ~'+t(d<0?-d:d)+" (renter surplus reinvested at 4% p.a.)

Monthly repayment	"+t(f)+"
7-yr total repayments	"+t(y)+"
7-yr maintenance & rates	"+t(k)+"
Upfront (stamp duty + fees)	"+t(r)+"
Property value after 7 yrs	"+t(l)+"
Equity after sale costs & loan	"+t(x)+"
Net cost of buying	"+t(C)+"
7-yr total rent paid	"+t(b)+"
Renter end portfolio value	"+t(o)+"
Net cost of renting	"+t(u)+"

"}e.addEventListener("click",function(e){e.target.dataset.act==="calc"&&n()}),e.addEventListener("input",function(e){e.target.dataset.f&&n()}),n()})()

How to use

Results refresh as you edit the fields — no need to press Calculate. Adjust any input to test alternative scenarios.

Notes

Results are highly sensitive to rate, growth, rent-growth and reinvestment assumptions — try several scenarios.

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