Rent vs Buy Calculator
Compare the real, long-term cost of renting versus buying a home — including mortgage payments, appreciation, maintenance, and selling costs — to see which option actually works out cheaper for you.
Should You Rent or Buy?
Enter details about the property you’re considering and your current rent to see which option leaves you better off over the years you plan to stay.
Rent vs Buy Comparison
Compare the total cost of renting against the net cost of buying.
How it Works
Understanding the rent vs buy calculation
Total Cost of Renting
We total your monthly rent over the years you plan to stay, increasing it each year by your expected annual rent increase.
Total Cash Outlay for Buying
We add your deposit, buying costs, mortgage payments, maintenance and any service charge paid over the same period.
Equity & Home Value
Using your expected price growth, we project the home’s future value and subtract the mortgage balance still owed to find your equity.
Net Cost of Buying
We subtract your equity (minus selling costs) from your total cash outlay, then compare this net cost against the total cost of renting.
Key Cost Factors to Consider
A general overview of the costs and variables that typically tip the balance between renting and buying in the UK.
| Cost Factor | Typical Range | Applies To |
|---|---|---|
| Stamp Duty & Legal Fees | £1,000 – £15,000+ | Buying (one-off, varies with price & buyer status) |
| Mortgage Deposit | 5% – 25% of home price | Buying (one-off, larger deposit = lower rate) |
| Maintenance & Insurance | 1% – 2% of home value / year | Buying (ongoing) |
| Estate Agent / Selling Fees | 1% – 3% of sale price | Buying (paid when you eventually sell) |
| Annual Rent Increases | 2% – 6% per year | Renting (ongoing, market dependent) |
| Tenant Deposit | Usually 5 weeks’ rent | Renting (refundable, not a net cost) |
Rent vs Buy FAQ
Answers to the most frequently asked questions about comparing renting and buying a home.
A rent vs buy calculator compares the total cost of renting a property over a set number of years against the net cost of buying the same value of property. The buying side accounts for your deposit, mortgage payments, maintenance, and buying costs, then subtracts the equity you build up through repayments and house price growth. Whichever figure is lower over your chosen time frame is typically the more cost-effective option.
The true cost of buying is not just your mortgage payment. It includes your deposit, stamp duty and legal fees, ongoing maintenance and insurance, and selling costs when you eventually move. From this total outlay, you subtract the equity you have built, which comes from paying down the mortgage balance and any increase in the property’s value.
Yes, renting can be cheaper than buying, particularly over shorter time horizons, in markets with slow house price growth, or when buying costs and maintenance are high relative to rent. Renting also avoids the risk of falling property values and offers more flexibility to move without selling costs.
The breakeven point is the number of years you would need to stay in a home before buying becomes cheaper than renting, once all buying costs, mortgage interest, maintenance and expected appreciation are taken into account. Staying beyond this point generally favours buying, while moving sooner often favours renting.