Rent vs Buy Calculator New Zealand 2026
Compare the true cost of renting vs buying in NZ, factoring in no capital gains tax, KiwiSaver first home benefits, and the opportunity cost of your deposit.
2026. No CGT on property (bright-line 2 years). RBNZ LVR 80%. All figures are projections, not financial advice.
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How to Use This Calculator
Tab "Rent vs Buy"
Enter the property price, comparable weekly rent, deposit %, mortgage rate, and property growth rate. The calculator computes net wealth for both scenarios over your chosen time horizon. Buying wealth = home equity (appreciated value minus remaining mortgage) with no capital gains tax. Renting wealth = invested savings (deposit + monthly cost difference compounded at your chosen investment return). It shows which option wins and the break-even year.
Tab "Cash Flow"
See the weekly and monthly outflow for buying (mortgage + council rates + insurance + maintenance + body corp) versus renting (weekly rent + contents insurance). The year-by-year table shows equity, investment balance, and the winner per year. This helps you understand the ongoing cash flow impact of each choice.
Tab "Sensitivity"
Choose a variable to test — property growth, rent increases, or mortgage rates — and see how 3 scenarios (pessimistic, base, optimistic) change the outcome. This reveals which assumptions matter most for your rent vs buy decision in the NZ market.
The Formula
Monthly rate = annual rate / 12
Monthly payment = P × r × (1+r)^n / ((1+r)^n - 1)
No LMI in New Zealand:
RBNZ uses macro-prudential LVR speed limits instead of lenders mortgage insurance.
Owner-occupiers: max 80% LVR (20% deposit). First home buyers: up to 90% LVR (DTI < 6).
Net wealth comparison:
Buy net wealth = Home value × (1 + growth)^n − Mortgage balance (NO capital gains tax)
Rent net wealth = Invested savings (deposit + monthly surplus) compounded at investment return
Break-even: The year when buy net wealth first exceeds rent net wealth.
Key NZ advantage: Property gains are completely tax-free (except bright-line test: 2 years).
The renter invests the entire deposit upfront, plus any monthly savings versus the buyer's total outflow. Council rates and maintenance scale with property value over time.
Example
Auckland House — $800K vs $550/week Rent
A first-time buyer considering an $800,000 house in Auckland with 20% deposit, versus continuing to rent at $550/week.
The renter saves roughly $481/week and invests the $160,000 deposit upfront. At 6% investment return and 4% property growth, buying typically breaks even around year 7-10 depending on rent increases. The absence of capital gains tax significantly favours buying over the long term — over 15+ years, the tax-free equity accumulation usually puts buying well ahead.