Rent vs buy verdict
Verdict
Renting costs less
$145k over 5 years
Renting costs $145k less over 5 years under these assumptions.
Average gap: $2,412/mo
How we got this
Arvocado cost model | as of 2026-07-06 | Price growth, tax, sale costs, and moving costs are not modelled.
5-year horizon.
Arvocado cost model | Engine output.
Arvocado cost model | Engine output.
Break-even curve
Closest gap year 1
Buying
$309k
Net cost over the horizon
Average: $5,157/mo
Renting
$165k
Net cost over the horizon
Average: $2,745/mo
Buying cash paid
How this is worked out
Adds the monthly ownership costs across the selected horizon.
$362k
Loan principal paid down
How this is worked out
Counts the loan principal paid down during the selected horizon.
-$52k
Buying cost after principal
How this is worked out
Subtracts principal paid down from the buying cash paid.
$309k
Rent paid
How this is worked out
Adds weekly rent across the horizon with the selected rent growth.
$201k
Deposit earnings if renting
How this is worked out
Compounds the deposit while renting at the selected return.
-$37k
Renting cost after deposit earnings
How this is worked out
Subtracts deposit earnings from rent paid.
$165k
Assumptions
Not legal, planning, or financial advice.
Purchase price
How this is worked out
Uses the price entered here or passed in from a linked property.
$980k
Deposit
How this is worked out
Uses the deposit entered here to set the starting loan size.
$196k
LVR
How this is worked out
Compares the loan amount with the purchase price.
80%
Equivalent weekly rent
How this is worked out
Uses the weekly rent entered for a comparable home.
$720/wk
Horizon
How this is worked out
Sets how many years of buying and renting costs are counted.
5 years
Rent growth
How this is worked out
Raises the rent each year by the selected growth assumption.
3%
Deposit return
How this is worked out
Compounds the unused deposit while renting at the selected return.
3.5%
Loan setting
How this is worked out
Uses the selected loan rate with the standard loan term.
6.25% p.a., 30 years
Property price growth, tax, sale costs, and moving costs
How this is worked out
These items stay outside the comparison until the switch is turned on.
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Renting costs less
$145k over 5 years
Not legal, planning, or financial advice.