CalcStudioFinancial Calculators for BusinessBuying and renting are compared over the period you choose, with both paths spending the same each year. The buyer pays the mortgage, insurance and maintenance and ends with the home; the renter pays rent, invests the deposit and the difference, and ends with the savings. The result is which path leaves you further ahead, and by how much.
Live comparison
Adjust the assumptions and see which path leaves you in the stronger position.
10 years comparison
Buying comes out ahead by
Buy - net position
Rent - net position
Future house value
After 10 years at 4% growth
Total mortgage paid
Includes $357,615 interest
Total rent paid
Renter's final savings
Deposit plus everything not spent on renting, compounded
Both paths spend the same each year - the buyer on mortgage, insurance and maintenance, the renter on rent plus whatever is left over, which goes into savings. Net position = what you are left holding at the end, less that shared outlay: the home's value for buying, the savings balance for renting. Estimate only - it excludes tax, transaction and moving costs, and rate changes.
Where each path leaves you at the end of each year across the comparison horizon.
Both paths pay the same each year, so the gap is simply the home's value against the renter's savings balance.
What buying costs each year against what renting costs and saves.
| Year | House value | Insurance | Maintenance | Mortgage | Rent | Renter invests | Renter’s savings |
|---|---|---|---|---|---|---|---|
| 1 | $832,000 | $2,400 | $8,000 | $46,446 | $36,400 | $20,446 | $186,846 |
| 2 | $865,280 | $2,496 | $8,320 | $46,446 | $35,152 | $22,110 | $216,429 |
| 3 | $899,891 | $2,596 | $8,653 | $46,446 | $36,558 | $21,136 | $246,222 |
| 4 | $935,887 | $2,700 | $8,999 | $46,446 | $38,020 | $20,124 | $276,195 |
| 5 | $973,322 | $2,808 | $9,359 | $46,446 | $39,541 | $19,071 | $306,314 |
| 6 | $1,012,255 | $2,920 | $9,733 | $46,446 | $41,123 | $17,976 | $336,542 |
| 7 | $1,052,745 | $3,037 | $10,123 | $46,446 | $42,768 | $16,837 | $366,841 |
| 8 | $1,094,855 | $3,158 | $10,527 | $46,446 | $44,478 | $15,653 | $397,167 |
| 9 | $1,138,649 | $3,285 | $10,949 | $46,446 | $46,258 | $14,421 | $427,475 |
| 10 | $1,184,195 | $3,416 | $11,386 | $46,446 | $48,108 | $13,140 | $457,714 |
Where each path leaves you at the end of each year across the comparison horizon.
Both paths pay the same each year, so the gap is simply the home's value against the renter's savings balance.
Worked example: An $800,000 house with a 20% deposit at 6% over 30 years, growing 4% a year, against $650 a week in rent with savings earning 4%: after 10 years the home is worth $1,184,195 and the renter's savings $458,311, so buying ends $725,884 ahead.
How much could I borrow for my first home?
Tests income, living costs and deposit against the three limits a New Zealand lender applies, and shows which one holds you back.
Shows: A borrowing range and purchase budget from your income, costs and deposit, and which of the three lender limits - repayments, 6x income or deposit - decides it.
What will my repayments be?
Work out weekly, fortnightly or monthly repayments on any loan, plus the total interest and the date it is paid off.
Shows: Weekly, fortnightly or monthly repayments, total interest and the full schedule, with an interest-only period if you want one.
How much income do I need for this home?
Work backwards from a home price to the take-home income a lender would want to see.
Shows: The monthly repayment, plus your other debts, living costs and a lender's $100 buffer: the take-home income needed each month and year.
