Buy vs rent ratio.

Price-to-rent ratio = property price ÷ annual rent. Standard guidance: under 15 = better to buy, 15-20 = marginal, over 20 = better to rent. Useful for comparing markets and deciding rent vs buy. Doesn't account for taxes, maintenance, opportunity cost - but quick directional indicator.

300,000 property × 1,500/month = 18,000 annual rent. Ratio: 300,000 / 18,000 = 16.7. Marginal buy/rent zone. Calculation favours buying if you intend to stay 5+ years and have low alternative investment returns. Favours renting if mobile career or strong investment alternatives.

Ratios typically high.: 25-35. typical: 18-22. average: 12-18. Higher ratios mean rent is cheap relative to property prices - usually good time to rent and invest difference. Lower ratios mean rent expensive relative to ownership - usually time to buy. Trends shift with interest rates and housing supply.

Run it with sensible defaults

Using property price of 300,000, monthly rent of 1,500, the calculation works out to 16.7. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.

The levers in this calculation

The inputs — Property Price and Monthly Rent — do not pull with equal force. Frequency and unit price pull the total in different directions. The biggest surprise for most people is how small recurring amounts compound into large annual figures — that's where this calculation earns its keep.

How the math works

Annual rent = monthly × 12. Ratio = price ÷ annual rent. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".

Where this fits in planning

This is a "what-if" tool, not a forecast. Use it to test ideas before committing: what happens if the rate is 2% lower than hoped, what happens if you add five more years. The value is in the scenarios you run, not the single answer you get from the defaults.

What this doesn't capture

Steady-rate math ignores real-world volatility. Actual returns are lumpy; sequence-of-returns risk matters most in drawdown; fees and taxes drag on compound growth; and behaviour changes in drawdowns can reduce outcomes below the projection. Treat the number as one scenario, not a forecast.