Rent vs Buy Calculator Malaysia
Renting is not throwing money away, and buying is not automatically winning. It depends on how long you stay and what you assume prices do — so this shows both, and how easily the answer flips.
Verdict
Buying wins by RM 165,028.42 over 10 years
Renting
- Total rent paid
- RM 247,619.79
- Investment gain on your upfront cash
- − RM 30,219.37
- Net cost
- RM 217,400.42
Buying
- Upfront cash
- RM 62,925.00
- Instalments paid
- RM 245,619.25
- Holding costs
- RM 36,000.00
- Property value at end
- RM 671,958.19
- Still owed
- RM 379,785.93
- Equity at end
- − RM 292,172.26
- Net cost
- RM 52,372.00
On these assumptions buying pulls ahead from year 2.
That year moves a lot with the appreciation rate — the grid below shows how much.
Where the answer flips
The verdict flips on two things: how long you stay, and what you assume prices do. At 0% appreciation, renting wins over five and ten years on your current numbers.
| Stay | 0% p.a. | 2% p.a. | 3% p.a. | 5% p.a. |
|---|---|---|---|---|
| 5 yrs | Rent +RM 21,250 | Buy +RM 30,791 | Buy +RM 58,388 | Buy +RM 116,891 |
| 10 yrs | Rent +RM 6,930 | Buy +RM 102,567 | Buy +RM 165,028 | Buy +RM 307,518 |
| 20 yrs | Buy +RM 106,284 | Buy +RM 349,258 | Buy +RM 509,340 | Buy +RM 932,933 |
| 35 yrs | Buy +RM 572,006 | Buy +RM 1,071,951 | Buy +RM 1,478,937 | Buy +RM 2,830,014 |
Assumptions in this model
- Holding costs stay flat — they are not assumed to rise over the years.
- No agent commission or Real Property Gains Tax on sale — this assumes you keep the property rather than sell it.
- No renovation cost.
- No income tax effects.
- The instalment is assumed unchanged for the whole period you stay.
Leaning towards buying? Check you can get the loan first.
The figures above are pure arithmetic — they do not check any bank's rules. Our DSR calculator runs your numbers through each bank's actual limits.
Check if the bank would approve →Indicative estimates for planning, not financial or investment advice. The verdict is extremely sensitive to the property appreciation rate — that is your own assumption, not our forecast. It does not include agent commission or Real Property Gains Tax on sale, renovation, or income tax effects, and it assumes the instalment stays unchanged for the whole period. Confirm your own numbers with your financial adviser.
Frequently asked questions
- Is renting really throwing money away?
- No. Rent buys you somewhere to live and the freedom to move; a mortgage buys you equity but locks up a large deposit and ties you to one place. On the default figures here, buying wins over ten years — but set appreciation to 0% and renting wins. Neither is automatically right.
- How long do I need to stay for buying to win?
- It depends almost entirely on what prices do. If property rises 3% a year, buying is ahead within two years on these figures. If prices go nowhere, renting stays ahead for about the first twelve years, because the upfront costs and early interest take that long to be outweighed by the principal you have paid down.
- Why does this include a return on my cash if I rent?
- Because if you rent, you do not hand over the down payment, the legal fees or the valuation — that money stays yours and can earn something. Leaving it out would quietly stack the comparison in favour of buying, which is how most rent-versus-buy calculators end up recommending buying.
- What is not included?
- The agent commission and Real Property Gains Tax you would pay when selling, renovation, income tax effects, and any change in your instalment if rates move. Holding costs are also assumed flat. Those all matter, so treat the answer as a direction rather than a precise figure.
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