Buy vs Rent Calculator - Commercial Property

Understanding Your Calculator Results

What These Numbers Mean for Your Business

The results you see above are based on typical commercial property lending criteria in Australia. Here’s how to interpret what the buy vs rent calculator is telling you.

Your Borrowing Capacity is calculated using your business net profit multiplied by a serviceability factor (usually 2.5-3.5x depending on the lender). This is different from residential lending where personal income matters most. For commercial property loans, lenders focus on whether your business can service the debt, not your personal finances.

Upfront Costs include your deposit, stamp duty (which varies by state but typically runs 4-5% of purchase price), legal fees, and other acquisition costs. This is the total cash you need before settlement. Many business owners use equity from residential property to cover these costs rather than depleting business cash reserves. 

Monthly Comparison shows your total ownership cost versus current rent. Remember that part of your mortgage payment is building equity (forced savings), while 100% of rent payments are gone forever. The calculator factors in property costs like rates, insurance and maintenance that you don’t pay as a tenant.

Equity Building demonstrates how much wealth you’d accumulate through principal reduction and property appreciation. This assumes typical commercial property growth of 3-4% annually, though actual appreciation varies by location and property type. Read about commercial property market trends →

Break-Even Timeline tells you when the equity gains outweigh the additional costs of ownership. If you’re planning to stay in the property longer than the break-even point, buying typically makes financial sense.

Next Steps After Calculating

Now that you’ve got numbers, here are three smart paths forward.

Option 1: Understand the Complete Picture

The calculator gives you the financial framework, but there’s more to the decision. Our complete guide covers when buying makes sense, when renting is smarter, tax benefits, and how to structure the purchase properly. Read the full guide →

Option 2: Get Pre-Qualified

If the numbers look good, let’s find out what you actually qualify for. Every lender has different serviceability rules, and we know which ones suit your business type and property. Some are generous with established businesses, others offer better rates but stricter criteria. Book a free consultation with our team on 1300 262 098, or book online here → 

Option 3: Explore Commercial Property Finance

Fine-tune your planning with our other commercial property resources and tools:

Owner-Occupier Commercial Property Finance → Find out how to buy your business premises with commercial finance

Commercial Property Investment Finance →  Find out how to get commercial finance to build your commercial property portfolio

This calculator and guide is for general information only and doesn’t constitute financial advice. Results may be inaccurate. Do not make financial decisions based on the content on this page and website. Speak with qualified professionals about your specific situation.