How does this calculator compare renting to buying?

The calculator works out the net financial cost of each option over your chosen period. For buying: all money paid out (stamp duty, legal fees, mortgage payments, maintenance) minus the equity you have built up (property value minus remaining mortgage). For renting: total rent paid minus the extra growth your deposit could have earned if invested instead. This gives a like-for-like comparison of what each option costs in real terms.

What is the deposit opportunity cost?

When you buy, your deposit is tied up in the property. If you rent instead, that money could be invested, earning returns in a stocks and shares ISA, for example. The calculator estimates the investment growth you forgo by using your deposit for a house purchase rather than keeping it invested. This is often called the 'opportunity cost' of home ownership.

What rate should I use for property growth?

UK house prices have grown at around 3-5% annually over the long run, though this varies significantly by region and period. London has historically outperformed, while other regions have seen slower growth. Using 3% is a cautious assumption; 5% is more optimistic. Try both to see how sensitive the comparison is.

What is the 1% maintenance cost?

Homeowners typically spend 1-2% of their property's value on maintenance and repairs each year. This covers things like boiler replacement, roof repairs, decorating, and appliances. Renters generally avoid these costs as the landlord is responsible. The calculator uses 1% as a conservative baseline.

Does buying always win over the long term?

Not necessarily. The outcome depends heavily on property growth, mortgage rate, how long you stay, and what the deposit could earn if invested. In high-rental-yield areas or where property growth is slow, renting and investing the difference can outperform buying, especially over shorter periods. The break-even year shows when buying starts to become financially superior.

Rent vs Buy Calculator

Compare the true financial cost of renting versus buying over your chosen time period, including opportunity cost, equity, and maintenance.

Your details

Property details

Property price

Deposit

£30,000 deposit · £270,000 mortgage

Mortgage rate

Mortgage term

First-time buyer (SDLT relief)

Renting & growth

Current monthly rent

Annual rent increase

Annual property growth

Deposit investment return

If renting, what the deposit earns if invested instead

Comparison period

Your results

Buying Saves £167,134 Over 10 Years

Buying is cheaper over 10 years

£167,134

Net saving from buying vs renting

Stamp duty: £0
Break-even year: Year 1
Buying net cost: £6,593
Renting net cost: £173,726

Breakdown

Buying

Deposit + upfront: -£33,500
Mortgage payments: -£180,090
Maintenance (1%): -£30,000
Property value: £403,175
Remaining mortgage: -£196,178
Equity gained: +£206,997
Net cost: £6,593

First-time buyer SDLT relief applied.

Renting

Total rent paid: -£192,593
Deposit invested: £30,000
Investment grows to: £48,867
Investment gain: +£18,867
Net cost: £173,726

Related calculators

Mortgage Calculator Stamp Duty Calculator Mortgage Affordability Investment Return Calculator

Frequently asked questions

Mortgage & Property Guide

Should you rent or buy in the UK?

The rent vs buy question is one of the most significant financial decisions most people make. Neither choice is universally better, it depends on your local market, how long you plan to stay, what deposit you have, and what matters most to you. The calculator above models the numbers, but the factors below help put them in context.

The true cost of buying

The purchase price is only part of the cost of buying. Add Stamp Duty (up to 5% for most buyers, more for additional properties), solicitor and survey fees (typically £2,000–£4,000), and mortgage arrangement fees. Then there are ongoing costs: buildings insurance, service charges and ground rent for leasehold properties, maintenance (budget 1–2% of property value annually), and the opportunity cost of your deposit capital sitting in bricks rather than investments. Homeownership costs are often underestimated relative to renting.

The true cost of renting

Renters avoid the upfront and maintenance costs of ownership, but typically pay more monthly for equivalent space in sought-after areas, and face rent increases at renewal. The biggest cost many renters overlook is the opportunity cost of not building equity. If you would have put a 10% deposit into a property rising 3% annually, your rent "saves" you from mortgage interest but may cost you equivalent growth over the long term. On the other hand, if you invest the deposit alternative wisely, renting can be competitive.

When renting tends to win

Renting is often financially better if: you plan to move within 5 years (transaction costs eat any short-term capital gain); the rental yield on similar properties is below 4–5% (suggesting landlords are subsidising tenants relative to the asset price); or you can invest a large deposit at returns exceeding mortgage interest. Renting also offers flexibility, a major non-financial factor for careers or lifestyles that require mobility.

When buying tends to win

Buying tends to outperform over longer horizons (10+ years) in areas with stable or rising prices, particularly when mortgage rates are low relative to rents. Paying down a mortgage is a form of forced saving that many renters find difficult to replicate. Homeowners also benefit from Private Residence Relief (no CGT on a main home's growth), which can make decades of property appreciation entirely tax-free. Stability and autonomy over your living space are valued benefits that don't appear in any financial model.

Sources & methodology

Built and maintained by UK Money Tools, a personal finance resource (not a financial adviser). Last reviewed April 2026. Rates and thresholds come from official UK government publications.

FCA: Mortgage conduct of business · Affordability rules and lending standards
Bank of England: Base rate · Current and historical base rates
HMRC: Stamp Duty Land Tax · Rates, thresholds and first-time buyer relief
GOV.UK: Capital Gains Tax on property · Property CGT rates and exemptions

Figures are estimates only. This is not financial or tax advice. For help with your specific situation, speak to HMRC or a qualified adviser.