Rent vs Buy Calculator

Buying
£
£

Stamp duty? Use the SDLT calculator.

Renting
We assume you invest the cash a buyer would tie up
£

The return the renter earns on the deposit and buying costs a buyer would tie up.

Comparison Period

How long you expect to stay in the home before selling.

Over 10 years

Buying is cheaper by £103,136 over 10 years

Buying leaves you better off in cash terms, mostly through the equity you build.

Net cost of buying

£58,892

Net cost of renting

£162,028

Key figures
Monthly mortgage payment£1,578
Deposit£30,000
Property value after 10y£403,175
Equity at end (after selling costs)£195,515
Total rent paid£178,837
Breakeven yearYear 2
How the net cost of buying is built
Deposit£30,000
Buying costs£5,000
Total mortgage paid£189,407
Total maintenance£30,000
Less equity at end-£195,515
Net cost of buying£58,892
How the net cost of renting is built
Total rent paid (growing 3.0%/yr)£178,837
Deposit + costs invested£35,000
Less investment gain-£16,809
Net cost of renting£162,028

Not financial advice. For educational purposes only. This is an illustrative projection on fixed assumptions, not a forecast. House prices, rents and investment returns are uncertain and rarely move in a straight line; the result is very sensitive to the growth and return figures you choose. It ignores tax and the non-financial value of owning or renting. Verify figures with a broker, adviser and accountant before deciding.

Thinking of buying as an investment rather than to live in? Run the full deal analysis with yield, cashflow and tax.