Rent vs buy calculator UK

Rent vs Buy Calculator UK

Should you rent or buy a home?

Compare the long-term cost of renting vs buying a home in the UK, including mortgage payments, rent increases, stamp duty, maintenance and investment growth.

In one sentence

Compare buying a home with renting and investing the deposit over the same time period.

Example presets

Start with the default example, a shorter stay, or a larger deposit scenario.

Compare renting with buying

Enter the home, mortgage and rent assumptions you want to compare. The result estimates wealth built from home equity versus renting and investing the deposit.

Property price (£)

The home price you are comparing.

Deposit amount (£)

Cash you would put into the purchase.

Mortgage interest rate (% per year)

A simple annual repayment mortgage rate.

Mortgage term (years)

The full mortgage term.

Comparison period (years)

How long you want to compare renting with buying.

Expected house price growth (% per year)

Use 0 if you want no growth assumption.

First-time buyer?

Yes

Use first-time buyer SDLT relief where eligible.

Use main residential SDLT rates.

Buying region

England / Northern Ireland

Auto-estimates Stamp Duty Land Tax.

Scotland

Different property tax applies.

Wales

Different property tax applies.

Renting assumptions

Current monthly rent (£)

Your current or expected rent.

Expected rent increase (% per year)

Use 0 if you want rent to stay flat.

Investment return if deposit is invested (% per year)

Expected annual growth from investing instead of buying.

Buying costs

Stamp Duty rules can change. Scotland and Wales use different property transaction taxes. This calculator currently estimates SDLT for England and Northern Ireland only unless a manual value is entered.

Stamp duty / property tax

Auto

Estimate SDLT for England / Northern Ireland.

Manual

Enter your own property tax estimate.

Manual stamp duty / property tax (£)

Used only when manual is selected.

Legal, survey and moving costs (£)

Conveyancing, survey and moving costs.

Mortgage arrangement/product fees (£)

Lender or broker product fees.

Annual maintenance (% of property value)

A broad annual repair and maintenance assumption.

Annual buildings insurance (£)

Estimated yearly buildings insurance.

Service charge / ground rent per month (£)

Optional monthly ownership cost.

Selling cost (% of future property value)

Estate agent, legal and selling costs.

Result

Buying may be better

Buying may leave you better off by £48,201 over 10 years.

This compares buyer wealth from estimated home equity with renter wealth from investing the deposit, upfront buying costs and any monthly saving. Total rent is shown separately as money spent.

Estimated difference

£48,201

In favour of buying.

Total rent paid

£206,350

Rent paid over the comparison period.

Monthly mortgage payment

£1,710

Repayment mortgage estimate.

Future property value

£448,030

Based on your house growth assumption.

Remaining mortgage balance

£219,887

Estimated balance after the comparison period.

Homeowner equity after selling costs

£221,422

Future value minus mortgage balance and selling costs.

Mortgage interest paid

£125,129

Interest paid during the comparison period.

Buying upfront costs

£6,499

Includes £2,500 stamp duty/property tax estimate.

Maintenance and ownership costs

£41,712

Maintenance, insurance and service charges.

Renter investment value

£173,221

Invested deposit, buying costs and any monthly rent saving.

Buyer investment value

£0

Monthly saving if buying is cheaper than renting.

Break-even year

Year 3

First year where buying overtakes renting.

Cashflow comparison

Estimated monthly ownership cost is £2,023 versus rent of £1,500. The calculator invests the renting monthly saving of £523.

Worked example

Example scenario

This example uses the default values in the calculator to compare buying a £350,000 home with a £50,000 deposit against renting at £1,500 per month over 10 years.

Property price: £350,000
Deposit: £50,000
Mortgage rate: 4.75%
Monthly rent: £1,500

The biggest drivers are the mortgage interest paid, rent increases, assumed house price growth, upfront buying costs and what the deposit could grow to if invested instead.

How the rent vs buy calculator works

The calculator compares the long-term financial position of buying a home with renting and investing the deposit instead. It estimates home equity after selling costs for the buyer and compares that with the renter's invested deposit, upfront buying costs and any monthly saving.

What costs are included when buying?

Buying includes mortgage interest, stamp duty or property tax, legal, survey and moving fees, mortgage fees, maintenance, buildings insurance, service charges or ground rent, and selling costs. The deposit and mortgage principal repayment are not treated as lost costs because they build equity.

What costs are included when renting?

Renting includes monthly rent and expected rent increases. The calculator also assumes the deposit and upfront buying costs are invested instead, and it invests any monthly saving if renting is cheaper than owning.

Why the result can change

Small changes in assumptions can move the answer. House price growth, mortgage rate, rent increases, investment return and the comparison period all affect whether renting or buying looks better.

Renting is not always wasting money

Renting can sometimes be financially sensible if buying costs are high, you may move soon, or your deposit can be invested elsewhere. Renting may also offer flexibility that a pure calculation does not fully capture.

Buying is not always guaranteed to win

Buying can be better over the long term, but it is not automatic. Mortgage interest, property tax, maintenance, selling costs and house price changes can all reduce the advantage of owning.

Example: renting vs buying over 10 years

With the default values, the calculator compares buying a £350,000 home with a £50,000 deposit against renting at £1,500 per month. The result is driven by mortgage interest at 4.75%, rent rising by 3% a year, house prices rising by 2.5% a year, investment growth of 5% a year, and the upfront and ongoing costs of buying.

FAQs

Is buying always better than renting?

No. Buying can build equity over time, but renting can be financially sensible if buying costs are high, you may move soon, or the deposit can be invested elsewhere.

How many years do I need to stay for buying to make sense?

There is no single number. The break-even point depends on stamp duty, mortgage interest, rent increases, maintenance, house price growth and how long you keep the home.

Should I include stamp duty in a rent vs buy calculation?

Yes. Stamp duty or the relevant property transaction tax is an upfront buying cost and can materially affect short-term comparisons.

Is mortgage repayment a cost or saving?

Mortgage interest is a cost. Principal repayment is different because it reduces the loan and builds equity, so this calculator does not treat repaid principal as money lost.

What investment return should I use?

Use a cautious long-term assumption and test several values. Investment returns are not guaranteed and can be negative over some periods.

Does this calculator give financial advice?

No. It is for general information only and uses simplified assumptions. It does not recommend renting, buying, investing or choosing a particular mortgage.

This calculator is for general information only and is not financial advice. It uses assumptions that may not match your actual costs, mortgage deal, tax position, rent, property value or investment returns. Property tax rules can change, and Scotland and Wales use different systems. Consider speaking to a qualified mortgage adviser or financial adviser before making decisions.

Related calculators

These calculators are for educational purposes only and do not constitute financial advice.

They use simplified assumptions and browser-based estimates. Read the full disclaimer before making important decisions.