By MoneyBees
Compare the true cost of renting versus buying a home in Singapore over the years you plan to stay, including stamp duties, mortgage interest, upkeep, the opportunity cost of your downpayment, and the equity you build.
Minimum 25% for a private bank loan (at least 5% in cash). Higher = smaller loan.
Around 2% in Oct 2026 (DBS HDB packages from 1.78%). Check current rates.
The break-even point depends heavily on this. Buying usually wins only over longer horizons.
Long-run SG residential growth has been modest. Be conservative.
Opportunity cost: what your downpayment + upfront costs could earn if invested instead.
Owner-only costs as a % of price each year. Renters don't pay these.
Agent commission, legal fees when you eventually sell.
Break-even rent
$2,308/month
If you can rent an equivalent home for less than ~$2,308/month, renting and investing the difference beats buying over 10 years. Pay more than that and buying wins. You entered $2,800/month, so buying is ahead.
Net wealth if you buy (10 yrs)
$535,519
home equity + any invested surplus
Net wealth if you rent + invest (10 yrs)
$451,430
upfront + monthly savings, invested
Break-even year
Year 4
buying pulls ahead from here
Blue = net wealth (home equity + invested surplus) if you buy. Green = the portfolio you'd build by renting and investing the difference. They cross at the break-even year.
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It depends mostly on how long you'll stay. Buying carries large upfront costs (downpayment plus stamp duties) that take years to recover through equity, so over short stays renting often wins, while over long horizons buying usually does. This calculator finds the break-even year for your own numbers.
The year at which the total cost of buying drops below the total cost of renting. Before it, renting is cheaper; after it, buying is. It's driven by your holding period, property appreciation, rent growth, and the opportunity cost of your downpayment.
Upfront: your downpayment, Buyer's Stamp Duty and ABSD. Ongoing: mortgage interest and upkeep (property tax, maintenance, MCST). It also charges an opportunity cost on your upfront cash, then credits back the equity you'd recover on sale (price growth minus the remaining loan and selling costs).
The cash you put down could otherwise be invested. Tying it up in property has a cost equal to the returns you give up, so the calculator includes it to keep the rent-versus-buy comparison fair.
Only partly. The stamp-duty and loan maths apply, but HDB has its own rules (eligibility, grants, MOP, different loan terms) that aren't modelled here. Treat it as a rough private-property scenario.
It's a scenario tool, not a prediction. Results swing a lot with appreciation, investment return and how long you stay. Stamp duties use current IRAS rates, but verify your buyer profile. Educational information only, not financial advice.
Price-to-rent = property price ÷ annual rent for an equivalent home. As a rough rule of thumb, a ratio below about 15 leans towards buying and above about 20 leans towards renting. Singapore's ratio is usually high (often 25+), which is why renting can compete here, but your holding period matters more than any single ratio.
If you use CPF for your home, you must refund the amount used plus the 2.5% interest it would have earned (the accrued interest) back into your CPF when you sell. It's not lost (it goes to your CPF rather than your pocket) but it reduces the cash proceeds you walk away with, so factor it into any buy decision.
Gross rental yields are commonly around 3 - 4% for private condos and a bit higher for HDB flats, before maintenance, property tax, vacancy and income tax. That's modest versus long-run equity returns, which is part of why investing the difference can rival owning over some horizons. Yields vary by location and market cycle.
These calculators provide general estimates for educational purposes only and are not personalised financial advice. Results may rely on rates and rules that change over time, so verify against official sources (IRAS, CPF Board, HDB, MAS) or consult a licensed financial adviser before making decisions.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).