Rent vs buy calculator

Compare the cost of renting a household item with buying it outright or borrowing for it instead. This calculator is for consumer goods such as furniture or electronics, not residential property.

What this native port captures

Total lease cost over the rental period
Extra cost compared with buying the same item outright
An alternative borrowing path that estimates payoff time and total repayment cost

Lease and buy inputs

Enter the consumer-lease payment, how often it is charged, the contract length in months, and the price to buy the same item outright.

Item you wish to buy

Rental payment

Rental payment frequency

Rental period (months)

Actual cost to buy the same item

What if I borrowed the money instead?

Use this section to compare the lease against a no-interest loan, credit card, layby-style plan or any other fixed repayment path.

Amount borrowed

Interest rate (% p.a.)

Repayment amount

Repayment frequency

Compare with personal loan calculator

Results

The comparison below keeps the same MoneySmart structure: lease total first, then a separate alternative borrowing estimate.

Total cost to rent $3,640

Total cost to buy $1,800

Extra cost to rent instead of buy $1,840

Lease period 24 months

Renting the item for $35 weekly over 24 months totals $3,640.

Buying the same item outright costs $1,800, so the lease adds $1,840 in extra cost.

Alternative borrowing result

Total cost to repay borrowed money $2,018

Estimated payoff time 23 months

Extra cost to rent instead of borrow $1,622

Borrowing vs rent Borrowing is cheaper

How these estimates work

This calculator is for consumer leases on goods and assumes you return the item at the end of the rental period.
Late fees, delivery fees, insurance and end-of-lease purchase options are not included.
The alternative borrowing result uses a fixed repayment amount and estimates how many payment periods it would take to reach a zero balance.
If the alternative repayment amount does not cover interest, no payoff estimate is shown.