Rent vs Buy Calculator
Occupier decision model — the total cost of leasing versus owning over a horizon.
Calculator
Rent versus buy
A simplified occupier comparison: the net cost of leasing against the net cost of owning over your holding horizon. Read the assumptions before you act on it.
Net cost of leasing —
Net cost of owning —
Owning: cash paid over horizon —
Owning: equity retained at end —
How this is calculated and what it assumes
Leasing cost is the sum of rent over the horizon, growing each year by the escalation rate. Owning cost is the down payment plus loan instalments paid during the horizon plus ownership outgoings, minus the equity you retain at the end (the down payment plus the loan principal repaid so far). A lower number is the cheaper option over the horizon.
- The loan instalment uses the standard amortizing formula at a fixed rate.
- Property capital appreciation is excluded, so owning is shown conservatively. Any price growth would improve the case for owning.
- No discounting to present value, no tax effects, no transaction costs (stamp duty, legal, agency). Use the dedicated stamp duty tools for those.
- Equity retained is not the same as cash in hand; selling has its own costs and timing.
Simplified model for direction, not a financing decision. Sense-check with your banker and tax adviser before committing.