Rent vs buy calculator South Africa

Year by year

Net position each year
Year	Home value	Bond balance	Buyer net	Renter net	Buy minus rent
1	R 1 881 000	R 1 595 611	R 191 339	R 313 313	−R 121 974
2	R 1 965 645	R 1 568 467	R 298 896	R 429 838	−R 130 942
3	R 2 054 099	R 1 538 257	R 413 137	R 551 582	−R 138 445
4	R 2 146 533	R 1 504 635	R 534 572	R 678 779	−R 144 207
5	R 2 243 127	R 1 467 214	R 663 757	R 811 672	−R 147 915
6	R 2 344 068	R 1 425 567	R 801 298	R 950 515	−R 149 217
7	R 2 449 551	R 1 379 215	R 947 858	R 1 095 572	−R 147 713
8	R 2 559 781	R 1 327 628	R 1 104 164	R 1 247 120	−R 142 956
9	R 2 674 971	R 1 270 213	R 1 271 010	R 1 405 449	−R 134 439
10	R 2 795 345	R 1 206 313	R 1 449 265	R 1 570 859	−R 121 594
11	R 2 921 135	R 1 135 195	R 1 639 884	R 1 743 666	−R 103 781
12	R 3 052 587	R 1 056 043	R 1 843 914	R 1 924 197	−R 80 283
13	R 3 189 953	R 967 950	R 2 062 505	R 2 112 797	−R 50 292
14	R 3 333 501	R 869 907	R 2 296 919	R 2 309 823	−R 12 904
15	R 3 483 508	R 760 789	R 2 550 602	R 2 517 707	R 32 895

How the rent vs buy calculator works

Last updated 10 November 2026

Renting versus buying is a question of where your money does more for you. A buyer builds equity but pays interest, levies, upkeep and selling costs. A renter pays no such costs but builds nothing in the property, so the saved money has to be invested to keep up.

How it works

Every month the calculator pays the bond, adds running costs and upkeep for the buyer, and rent for the renter. The side that spends less invests the difference at the return you choose. Property value grows and rent rises at the yearly rates you enter. At the end, the buyer sells (paying selling costs) and clears the bond.

Transfer duty is added to the buyer’s upfront costs from the SARS table on this site.
The renter starts with the deposit and buying costs invested.
Costs such as levies grow with inflation each year.

Worked example

With the starting figures:

Buying needs R 201 786 in cash upfront and a bond repayment of R 16 447 a month.
After the period, the buyer is worth R 2 550 602 and the renter R 2 517 707.
The difference is R 32 895 in favour of buying.

How to read your result

The headline shows which path is ahead after the years you chose, and by how much. “Net position” means what each path would leave you with, in rand, at the end of that period.

With the starting figures, buying first pulls ahead in year 15. The line chart shows both paths year by year, so you can see whether one side is ahead all the way or the lines cross.

A result close to zero means the two paths are about equal. The gap is then smaller than the uncertainty in the assumptions, so treat it as a tie.

The assumptions that matter most

Nobody knows these numbers in advance, and each one moves the answer. Change them one at a time to see which one your result depends on.

Property value growth: how fast the home gains value each year. It can be zero or even negative.
Return on money you invest: what the renter earns on the deposit and the monthly savings. It is not guaranteed.
Rent increase: how quickly rent rises each year. Faster increases favour buying.
Maintenance and levies: the buyer pays these, the renter does not. Older homes tend to cost more to keep up.
Selling costs: agent and legal costs when the buyer sells. Use a quote if you have one.

Why the renter invests the deposit

A fair comparison has to treat both sides the same way. The buyer puts the deposit and buying costs into the home. If the renter kept that money in a drawer, the renter would be at a disadvantage that has nothing to do with renting.

So the calculator gives the renter the same starting cash and lets it grow at the return you enter. Each month, whichever side spends less also invests the difference.

What this does not cover

The sum looks at money only. It leaves out tax on investment returns, capital gains tax on a sale, a bond rate that moves, repairs bigger than the maintenance allowance, and the work of looking after a home. It also leaves out the non-financial side, such as security of tenure, freedom to move, and what a home means to you. Check the SARS website for how tax applies to your own case.

Things to watch

A small change in property growth or investment return can flip the answer. Test a few values.
The investment return is not guaranteed and is taxed in real life. The result ignores that tax.
Selling costs and transfer duty make buying a poor choice for a short stay.
The tool compares money only.

This is an illustration, not advice. Read the full disclaimer. See also the bond repayment calculator.

Questions people ask

How does the comparison work?

Both sides spend the same cash each month. Whichever has the lower outgoing invests the difference. The renter also invests the deposit and buying costs at the start. After the chosen number of years, the buyer’s net position is the sale price less selling costs and the bond, plus any savings. The renter’s is the investment pot.

Does the answer depend on the assumptions?

Very much. Property growth, the return on investments and rent increases move the result a lot, and nobody knows them in advance. Try several values.

What is left out?

Income tax on investment returns, capital gains tax on a sale, changes in the bond rate, the cost of repairs that are bigger than the maintenance allowance, and the non-financial side of owning or renting.

Estimates only, based on 2026/27 figures. Not financial advice. Read the full disclaimer.