Home Buy a Home vs Rentvest vs Rent Calculator
Buy a Home vs Rentvest vs Rent Calculator
Should you buy the home you live in, rentvest, or keep renting while you invest? Enter your deposit, income, rent, loan rate and expected growth, and the calculator compares the three paths side by side. It is free and gives an estimate from your numbers, not a guarantee or financial advice.
Free calculator
Compare the three paths
Enter your deposit, income and the rent you pay now, then the price, rent and loan rate of the property you would buy and the growth you expect. The calculator compares buying your own home, rentvesting and renting while you invest, so you can see which path leaves you ahead on your own numbers. Results are estimates.
How the three options differ
Buy, rentvest or rent
Buying your home builds equity where you live, and your main residence is usually free of capital gains tax when you sell. Rentvesting means renting where you want to live and buying an investment where price, rent and growth suit an investor. Renting keeps you flexible and lets you invest your savings elsewhere.
- Buy your home
You build equity in the place you live, and your home is usually free of capital gains tax when you sell.
- Rentvest
You rent where you want to live and buy where prices, rent and growth suit an investor. Rent from the investment helps pay the loan.
- Rent
You keep flexibility and invest your savings elsewhere.
Before you decide
Use it well
Start with your real budget: your deposit, income and current rent. Use the price, rent and loan rate you have actually been quoted, then test a lower and a higher growth rate to see how much the answer moves. The best choice also depends on where you want to live and how long you plan to stay.
- 1Start with your budget
Enter your deposit, income and the rent you pay now.
- 2Use real prices
Use the price, rent and loan rate you have actually been quoted.
- 3Test the growth
Try a lower and a higher growth rate to see how much the answer moves.
- 4Think about life
The best choice also depends on where you want to live and how long you plan to stay.
Results are estimates from the numbers you enter. They are general information, not financial advice.
What to count
What a rent vs buy comparison should include
A fair rent versus buy comparison counts every cost on each path, not just the mortgage and the rent. For buying, include the deposit, stamp duty, loan repayments, rates, insurance and maintenance. For renting, include the rent and what your savings could earn if you invest them.
- 1Upfront costs
The deposit, stamp duty, legal fees and loan costs. Stamp duty and concessions differ by state, so check your state revenue office.
- 2Ongoing costs
Loan interest, council rates, insurance, strata fees and maintenance.
- 3Rent and rent rises
Set the rent you pay now and how fast you expect it to grow.
- 4Growth and investing
Compare the growth you expect on a property with the return on savings you invest while renting.
Test the loan side with the WTP mortgage calculator, check what an investment could earn with the investment property yield calculator, or compare holiday rental income with the short-term rental yield calculator and the Airbnb rental cashflow calculator. More tools are on our calculators and resources page.
Your home or an investment
Buying your home or buying an investment
Your own home and an investment property are treated differently for tax and lending. Your main residence is usually free of capital gains tax when you sell, while an investment property is not, and rent from an investment is income. A licensed tax adviser or accountant can tell you how each applies to you.
If you decide to buy the home you will live in, our home buyers agent service can help you find and negotiate it. If you decide to rentvest, our investment property buyers agent service looks at price, rent and growth for an investor. See how our fees work on the buyers agent fees page.
Buy, rentvest or rent: common questions
Common questions about buying, rentvesting and renting: what rentvesting is, whether buying is always better than renting, how rent from an investment is treated, what a principal place of residence is, and how capital gains tax applies. The calculator gives general information, not financial, tax or legal advice.
What is rentvesting?
Rentvesting means renting where you want to live and buying an investment property in a place where the price, rent and growth suit an investor.
Is buying my own home always better than renting?
Not always. The best choice depends on your income, deposit, where you want to live and how long you plan to stay. The calculator lets you compare the three paths with your own numbers.
What is the difference between a principal place of residence and an investment property?
Your principal place of residence (PPOR) is the home you live in. An investment property is one you buy mainly to earn rent and growth. Tax and lending treat them differently, so ask a licensed tax adviser or accountant how each would apply to you.
Do I pay capital gains tax when I sell my own home?
Your main residence is usually exempt from capital gains tax, and an investment property is not. The ATO says that from 1 July 2027 the 50% discount is replaced by cost base indexation and a 30% minimum tax rate on later gains. Check the ATO page and speak with a tax adviser.
Does the calculator include rent from an investment?
Yes. For the rentvest path, rent from the investment property helps pay the loan, and you can enter your own rent, loan and growth assumptions.
Can I use the 5% Deposit Scheme to rentvest?
No. The Australian Government 5% Deposit Scheme is for a home you will live in, so an investment property is not eligible. Price caps apply by location. Check the current rules on the First Home Buyers website before you plan around it.
How long do I need to stay in a home for buying to beat renting?
There is no single number. Buying has large upfront costs such as stamp duty and loan costs, so a short stay can favour renting. Enter your own costs, rent and growth into the calculator, then test a shorter and a longer stay.
Is rentvesting a good idea?
It can suit people who want to live in an expensive area but buy where the price and rent suit an investor. It also adds risks, such as vacancy, rent that does not cover the loan and rising interest rates. Test the numbers first and speak with a licensed financial adviser.
Is this financial advice?
No. The results are estimates and general information. Speak with a licensed financial adviser before you decide.
Facts checked 28 October 2026.
- The ATO says that from 1 July 2027 the 50% capital gains tax discount is replaced by cost base indexation and a 30% minimum tax rate on gains that accrue after that date (Australian Taxation Office, checked 28 October 2026).
- The national residential vacancy rate was 1.4% in September 2026, and combined advertised rents were 7.6% higher than a year earlier (SQM Research, checked 28 October 2026).
- The national gross rental yield was 3.85% in September 2026, up from 3.61% a year earlier, and annual rent growth eased from 5.9% to 5.5% (Cotality, checked 28 October 2026).
- The Australian Government 5% Deposit Scheme lets eligible first home buyers buy a home to live in with a 5% deposit and no lenders mortgage insurance, and investment properties are not eligible (First Home Buyers, Australian Government, checked 28 October 2026).
Want help choosing?
Our home buyers agents and investment buyers agents can talk through whether buying, rentvesting or renting suits your goals and budget. Book a free 15-minute call, or phone 0434 211 016 during business hours, Monday to Friday 8 am to 5:30 pm and Saturday 8 am to 12 pm.