Rent vs Buy Calculator — South Africa
Compare the true long-term financial outcome of renting versus buying over any time period.
Rent vs Buy Calculator
Enter your details to see which makes more financial sense over your chosen period
* This analysis compares financial outcomes only. Lifestyle, flexibility, security of tenure, and personal circumstances are equally important factors in the rent vs buy decision.
Frequently Asked Questions
Common questions about this calculator
▸ Is it better to rent or buy property in South Africa in 2026?
At current interest rates, buying is cash-flow negative for most properties. The case for buying is long-term: capital growth, bond paydown building equity, and protection against rental increases. Renting offers flexibility and lower upfront costs. The right answer depends on your time horizon, lifestyle, and financial position.
▸ How long do you need to own a property in SA to break even vs renting?
The break-even point varies significantly by area and property type. In most SA metros, the break-even horizon is currently 7–12 years given high interest rates. In high-growth areas like Cape Town, it can be shorter; in lower-growth areas, longer.
▸ What is the opportunity cost of a deposit?
Your deposit invested in a property cannot earn returns elsewhere. The opportunity cost is what that money would have earned in the best alternative investment — typically calculated at 8–10% for SA investors (similar to balanced unit trust returns). Our calculator accounts for this when comparing renting vs buying.
How to Use This Calculator
Enter the property price you are considering and your current monthly rent. Add your deposit and monthly ownership costs. Set your time horizon — the longer the period, the stronger the case for buying typically becomes.
The calculator accounts for the opportunity cost of your deposit — what it could earn invested elsewhere at 8%. This is what most comparisons miss. A positive result for buying means property outperforms renting AND investing your deposit over the chosen period.