Adjie Brotosukmono's blog: personal finance, power and software engineering, and life between Perth and Jakarta, with interactive calculators from Adjie Brotools built into the posts. https://blog.adjiebrotots.com/en/feed.xml 2026-10-17T09:00:00+08:00 Adjie Brotosukmonohttps://www.adjiebrotots.com/ https://blog.adjiebrotots.com/assets/img/logo.png https://blog.adjiebrotots.com/en/rent-vs-buy-calculator-explained/ 2026-10-17T09:00:00+08:00 2026-10-17T09:00:00+08:00

Renting can leave you wealthier than buying, or the other way round. It depends on a few numbers you can test yourself. This post walks through the free Rent vs Own calculator with a live chart.

<p class="tldr"><strong>In short:</strong> buying wins when the house grows faster than what a renter earns on the money they did not spend on a deposit. Renting wins when it doesn’t. The <a href="https://tool.adjiebrotots.com/rentvsownhouse/">Rent vs Own calculator</a> puts both paths on the same monthly budget and shows which one ends with more net wealth, year by year.</p> <ul id="markdown-toc"> <li><a href="#what-the-calculator-compares" id="markdown-toc-what-the-calculator-compares">What the calculator compares</a></li> <li><a href="#the-live-chart" id="markdown-toc-the-live-chart">The live chart</a></li> <li><a href="#the-three-numbers-that-decide-it" id="markdown-toc-the-three-numbers-that-decide-it">The three numbers that decide it</a></li> <li><a href="#how-long-until-buying-pays-off" id="markdown-toc-how-long-until-buying-pays-off">How long until buying pays off?</a></li> <li><a href="#frequently-asked-questions" id="markdown-toc-frequently-asked-questions">Frequently asked questions</a> <ul> <li><a href="#does-the-calculator-account-for-inflation" id="markdown-toc-does-the-calculator-account-for-inflation">Does the calculator account for inflation?</a></li> <li><a href="#can-i-model-renting-first-and-buying-later" id="markdown-toc-can-i-model-renting-first-and-buying-later">Can I model renting first and buying later?</a></li> <li><a href="#is-my-data-uploaded-anywhere" id="markdown-toc-is-my-data-uploaded-anywhere">Is my data uploaded anywhere?</a></li> </ul> </li> </ul> <h2 id="what-the-calculator-compares">What the calculator compares</h2> <p>Both paths spend the <strong>same monthly housing budget</strong>. The owner pays the mortgage and the costs of owning. The renter pays rent and invests whatever is left, plus the deposit and setup costs they never had to pay, at the <strong>Risk-Free Rate</strong>.</p> <p>After each year the tool compares two numbers:</p> <table> <thead> <tr> <th>Path</th> <th>Net wealth is</th> </tr> </thead> <tbody> <tr> <td>Own</td> <td>The house value, minus the loan still owed, minus selling costs, plus any spare cash</td> </tr> <tr> <td>Rent</td> <td>The invested savings and their growth</td> </tr> </tbody> </table> <p>The gap between them is the <strong>equity difference</strong>. The year it changes sign is the <strong>breakeven year</strong>.</p> <h2 id="the-live-chart">The live chart</h2> <p>This chart is the calculator itself, embedded straight into the post. Hover over it to inspect a year, or open the full tool to change the numbers.</p> <iframe src="https://tool.adjiebrotots.com/rentvsownhouse/#embed=chartCanvas&amp;theme=light&amp;s=aG12yNLpkaXTJ0uiSJcjQspVCHnDYNhWsCj7MjCYItAMA" title="Comparison" width="100%" height="580" style="border:0;background:transparent" loading="lazy"></iframe> <p style="margin:6px 0 0;font-size:13px;text-align:right">Interactive chart: <a href="https://tool.adjiebrotots.com/rentvsownhouse/#open=chartCanvas&amp;s=aG12yNLpkaXTJ0uiSJcjQspVCHnDYNhWsCj7MjCYItAMA">Rent vs Own Property Scenario Explorer</a> by Adjie Brotot Tools</p> <script>addEventListener("message",function(e){var d=e.data;if(e.origin!=="https://tool.adjiebrotots.com"||!d||d.abtEmbed!=="height")return;[].forEach.call(document.getElementsByTagName("iframe"),function(f){if(f.contentWindow===e.source)f.style.height=Math.min(4000,Math.max(160,+d.height||0))+"px"})})</script> <h2 id="the-three-numbers-that-decide-it">The three numbers that decide it</h2> <ol> <li><strong>House price growth against the Risk-Free Rate.</strong> The owner’s wealth rides on the house, and the renter’s rides on their savings. A point of difference a year, compounded over 20 or 30 years, moves the answer more than anything else.</li> <li><strong>The mortgage rate.</strong> Interest is money the owner never gets back, just like rent. A higher rate pushes the breakeven year later.</li> <li><strong>Setup and selling costs.</strong> Stamp duty, legal fees and agent fees are paid once but cost a lot. They are why buying usually loses over a short horizon and only catches up later.</li> </ol> <h2 id="how-long-until-buying-pays-off">How long until buying pays off?</h2> <p>There is no single answer, which is why the calculator exists. Read the breakeven year from the chart for your own numbers. If you might move within that time, renting is the safer choice. If you will stay well past it, buying is likely to come out ahead.</p> <h2 id="frequently-asked-questions">Frequently asked questions</h2> <h3 id="does-the-calculator-account-for-inflation">Does the calculator account for inflation?</h3> <p>Figures are in future dollars, not adjusted for inflation. Rent, ongoing costs and the house price each grow at their own rate, which you set.</p> <h3 id="can-i-model-renting-first-and-buying-later">Can I model renting first and buying later?</h3> <p>Yes. Turn on <strong>Rent-Then-Buy</strong> and choose the year you buy. The tool adds that third path to the comparison.</p> <h3 id="is-my-data-uploaded-anywhere">Is my data uploaded anywhere?</h3> <p>No. Every calculation runs in your browser. The chart above carries its scenario inside its own link.</p> <hr /> <p><em>This is a sample post, written to test the blog’s layout.</em></p>