Rent vs buy calculator

This UK rent vs buy calculator helps you compare the estimated long-term cost of renting a home versus buying one with a repayment mortgage. It combines upfront purchase costs, ongoing monthly payments, and a simple net-position view (home equity vs invested savings) so you can see whether buying is likely to be better under your assumptions, and when you might break even.

Results are indicative, not advice. Real outcomes depend on mortgage deals, fees, maintenance surprises, rent negotiations, and market conditions. Use this tool to test scenarios rather than to “predict” the future.

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What this assumes
  • Repayment mortgage with a fixed rate for the model period.
  • Property value grows at a steady annual rate.
  • Rent increases at a steady annual rate.
  • Buying builds equity as the mortgage balance falls.
  • If renting, deposit savings can be invested at an assumed return.
For regulated advice, speak to a qualified professional.

Your details

Enter a home purchase scenario and a rental scenario, then compare over a time horizon.

Use the purchase price you’re comparing against your rent.
Deposit
If left blank, a default of 10% is used.
Use an estimated average rate over the period you’re modelling.
This affects the repayment amount and remaining balance over time.
If you need an estimate, use the Stamp Duty Calculator.
Solicitor, surveys, mortgage fees, and other one-off costs.
Maintenance
Typical estimates range from ~1% of property value per year, but it varies by property.
Increases with inflation if you provide an inflation rate.
Used to estimate future value and equity.
Enter the rent you would pay for a comparable home.
If left blank, a default of 3% is used.
Leave blank if not applicable.
How long you expect to stay in the home or keep renting.
Used to estimate the growth of savings if you rent instead of buying.
If provided, annual insurance costs rise with inflation.

Results

Renting total
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Buying total
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Equity after horizon
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Net position
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Comparison checkpoints —
Checkpoint Rent total Buy costs Home equity Rent investments
How this calculator works
  • Models a repayment mortgage with a fixed monthly payment.
  • Counts buying costs as interest + owner costs + purchase costs (not principal).
  • Estimates equity from future value minus remaining mortgage balance.
  • Estimates renting “net position” by growing your deposit savings at the assumed return.
  • Break-even is when buying’s equity exceeds renting’s investments.
Calculate to see your comparison
Enter your assumptions and press Calculate. Results appear here without shifting the layout.

Assumptions

Keep these in mind when interpreting the result.

  • Mortgage rate and rent increases are treated as steady averages.
  • Buying costs exclude selling costs (estate agent fees, conveyancing on sale).
  • Buying “cost” excludes mortgage principal because it becomes equity.
  • Maintenance is an estimate and can vary widely by property.
  • Investment returns are uncertain; this is a scenario tool, not a forecast.

Worked UK example

A realistic scenario to sanity-check the inputs.

  • Property price: £325,000 with a 10% deposit (£32,500).
  • Mortgage: 4.5% over 25 years (repayment).
  • Upfront purchase costs: £2,500 SDLT and £2,000 legal/fees.
  • Owner costs: 1% maintenance and £300 home insurance per year.
  • Rent alternative: £1,250/month with 3% annual increases and £150 renter insurance per year.
  • Horizon: 10 years, property growth 2.5%/yr, investment return 4%/yr.

Related tools

Useful calculators to help plan your property costs.

Mortgage calculator Remortgage savings Mortgage overpayments Stamp duty calculator

FAQs

Common questions about renting vs buying in the UK

What does “break-even” mean in this calculator?

Break-even is the first year where the estimated net position of buying (home equity) is greater than renting (investments). It’s sensitive to assumptions like house price growth, rent increases, and investment returns.

Does this include selling the home?

No. It estimates a position at the end of your time horizon without selling costs. If you expect to sell, you can roughly allow for estate agent and legal fees by adding a one-off cost.

Should I include stamp duty here or use your stamp duty tool?

Either works. If you already know your SDLT amount, enter it directly. Otherwise, use the Stamp Duty Calculator and paste the result.

What deposit should I assume?

Many lenders require a minimum deposit, and better rates often come with larger deposits. Use what you can realistically put down, and consider keeping an emergency fund aside.

How are mortgage payments modelled?

Mortgage payments are calculated using a standard repayment mortgage formula with a fixed interest rate for the full term. Real mortgages can change rate when a deal ends.

How are maintenance and insurance handled?

Maintenance can be entered as a % of property value per year or a fixed annual amount. Insurance and other annual costs are increased by the inflation rate (if provided).

What does the investment return represent?

It’s the assumed annual return on money you keep invested if you rent instead of buying (for example, the deposit and purchase costs). It’s an estimate and not guaranteed.

Why might renting look cheaper but buying still “wins”?

Renting can have lower monthly outgoings, but buying can build equity if the property value grows and the mortgage balance falls. The result depends on the balance of these effects.

Last updated: March 2026