Shares vs Property Calculator NZ

This calculator compares, in simple terms, how your money might grow if you invested it in shares versus using it as a deposit on a rental property, where borrowing can amplify your returns. This matters because shares and property grow differently: shares compound your own capital directly, while a property deposit lets you control a much larger asset through leverage, so a lower growth rate can still produce a bigger dollar gain, though the risks are higher too. You enter the capital you have to invest, the expected annual return on shares, the expected annual growth rate for property, the deposit percentage for the property, and your time frame in years. The calculator then projects both paths and returns your shares value, your property equity, and a verdict showing which produced the larger projected gain over your chosen period. Use it to see how leverage changes the numbers, and to compare return assumptions, deposit sizes or time frames side by side. This is a simplified growth comparison based only on asset values and starting capital; it does not account for rent, mortgage interest, rates, insurance, maintenance, tax or the effort and risk of owning property, all of which matter in real life. Treat the results as an indicative starting point for your own research, not financial advice, and weigh your risk tolerance and goals before deciding where to invest.

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Property (leveraged)
larger projected gain (asset growth only)
Shares value$580,453
Property equity$1,043,342

Highly simplified: shares grow your capital at the share return; property uses your capital as a deposit to buy a larger asset that grows at the property rate, with the gain magnified by leverage. It ignores rent, mortgage interest, tax, costs and risk, which are crucial in reality. Estimate only, not advice.

How it works

For shares, the calculator grows your capital at the share return over the years. For property, it treats your capital as the deposit, so you control an asset worth capital divided by the deposit percentage; that whole asset grows at the property rate, and the gain (which all accrues to you) is added to your starting equity. This shows the leverage effect: a lower growth rate on a much larger asset can still beat unleveraged shares, though the risk and costs are far higher.

Worked example

$150,000 in shares at 7% over 20 years grows to about $580,000. As a 20% deposit it controls a $750,000 property; at 4% growth that property reaches about $1.64 million, an equity gain that, added to the deposit, can exceed the shares, illustrating leverage, before rent, interest and costs are counted.

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Frequently asked questions

Are shares or property a better investment?

Both can build wealth. Property lets you borrow heavily, so a modest deposit controls a large asset and gains are amplified, but it is illiquid and has high costs. Shares are liquid, low cost and easy to diversify, but you usually invest unleveraged. The better choice depends on your goals, risk tolerance and effort.

Why does leverage matter for property?

With a 20% deposit you control five times your money in property, so even modest price growth produces a large return on your deposit, but losses are amplified too. Shares are usually bought with your own money, so returns track the market more directly.

Does this include rent and costs?

This is a simplified growth comparison on the asset values and your starting capital. It does not model rent, mortgage interest, tax or maintenance, which matter a lot in practice. Use it as a starting point, not advice.