Rent vs Buy Calculator
Compare the financial costs of renting versus buying a property over time in the UK.
Last updated: April 2026 · Source: ONS — Housing and home ownership statistics
Buying is cheaper over 10 years
Buy
Saving: £196,165.05
Buying
Monthly payment: £1,500.75
Total spent: £210,089.72
Property value: £403,174.91
Net cost: -£31,085.19
Renting
Current rent: £1,200.00/month
Total spent: £165,079.86
Equity built: £0.00
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
How It Works
The rent-vs-buy decision depends on many variables: property prices, rental costs, mortgage rates, house price growth, investment returns on the alternative use of a deposit, and how long you plan to stay. This calculator models both scenarios over your chosen time horizon to show which is financially better.
The buying scenario includes mortgage payments, deposit opportunity cost, stamp duty, maintenance (1-2% of property value per year), insurance and transaction costs when selling. The renting scenario includes rent (with assumed annual increases), renters' insurance and the investment return on cash that would otherwise go towards a deposit and purchase costs.
The result shows the net wealth position under each scenario at each year. In the early years, renting and investing often wins because of the high upfront costs of buying. Over longer periods, buying typically wins due to house price appreciation and the forced saving element of a repayment mortgage.
Example: £300,000 home vs £1,200/month rent over 10 years
- Buying total cost (mortgage, fees, maintenance): £215,000
- Property value after 10 years (3% growth): £403,200
- Net equity after selling costs: approx. £165,000
- Renting + investing deposit (£30,000 at 5%): £48,900
- Net position: buying ahead by approx. £116,100 after 10 years
Frequently Asked Questions
- What does the Rent vs Buy Calculator do?
- Compare the financial costs of renting versus buying a property over time in the UK. All calculations are performed in your browser using official UK rates and thresholds.
- Is this based on current interest rates?
- You can enter any interest rate to model different scenarios. Check the Bank of England base rate and current mortgage deals from lenders for the latest rates.
- Should I get professional advice?
- This calculator provides estimates for guidance only. For a formal mortgage offer, speak to a mortgage broker or lender who can assess your full circumstances and provide personalised advice.