Rent vs Buy Calculator

How this tool works

Reviewed 12 September 2026. NSW transfer duty rates for 2026-27.

Calculation outline

1. Projects mortgage principal and interest, ownership costs, property growth, rent changes and the renter’s invested cash over the selected period.
2. Year 0 shows the same starting cash (deposit plus cash buying costs) for both paths. Caps mortgage payments at the amount due and stops them at payoff. Both households fund the higher actual annual housing cost and invest any surplus at year end; the buyer also retains deposit cash above the price.
3. Compares buyer sale proceeds plus investments with renter investments. Portfolios never borrow to cover housing costs; both households must afford the shared budget.

Worked example

Example: for a $950,000 NSW property, the model applies $36,937 of standard transfer duty before adding any other entered buying costs.

Limits

• The duty estimate uses standard NSW rates only and does not apply first-home concessions, exemptions or other states’ rules.
• LMI is a broad estimate; lender pricing, tax, renovation costs and personal opportunity costs can differ materially.
• Investment returns are before income tax, capital gains tax and portfolio fees. This is not an after-tax spendable-wealth comparison. Ownership costs stay flat; rent follows the entered growth rate. Growth assumptions floor at -100%.

Sources

• Revenue NSW transfer duty rates
• Moneysmart home loans

This tool provides general information and illustrative estimates only. It does not consider your objectives, financial situation or needs and is not personal financial, tax or legal advice.