Decision one
What changes the result most?
How long you expect to stay put, the deposit position and the full monthly ownership cost rather than the mortgage payment alone. That is usually where the decision is won or lost.
Housing decision
Rent vs buy calculator
Use this page to compare the real long-term cost of renting versus buying, including ownership costs, equity build-up and the time it takes for buying to pull ahead.
What matters most
- How long you expect to stay put, the deposit position and the full monthly ownership cost rather than the mortgage payment alone.
- Buyers often compare rent with just the mortgage and leave out maintenance, insurance, service charges and opportunity cost.
- Test the next move properly by comparing buy now vs keep renting, then bigger deposit later vs sooner purchase.
Decision two
Where does the estimate flatter the plan?
Buyers often compare rent with just the mortgage and leave out maintenance, insurance, service charges and opportunity cost. A neat output can hide that until you push the inputs harder.
Decision three
What should you compare next?
Run the base case, then compare buy now vs keep renting, bigger deposit later vs sooner purchase, and monthly payment vs total housing cost. That usually tells you more than staring at one answer.
Before you calculate
Use this page to judge the strength of the housing decision, not to rubber-stamp it
The point of this calculator is to show what really changes the outcome. For renting versus buying, the biggest drivers are how long you stay, the deposit size, and the full cost of ownership beyond the mortgage.
Run one version based on current conditions, one with slower house price growth, and one with higher costs. If buying only wins in the most optimistic case, the decision is less certain.
Calculator
Run the numbers before you commit to housing decision
Use figures you could keep up with in an ordinary month. The value here is not prediction for its own sake. It is about testing whether the plan still looks sensible once the easy assumptions are stripped out.
Calculator
Enter your assumptions and select Calculate to view the estimated rent cost, buying cost, equity and net position over your chosen horizon.
Results
Your estimated rent versus buy summary appears here after calculation.
Comparison snapshot
—
On these assumptions, the lead scenario is — and break-even is —.
Net position
—
Rent total—
Buy costs—
Calculate to see the full summary for this scenario.
Interpret the result
How to read this result like a real decision
The headline number matters, but it is rarely the whole story. With renting versus buying, you need to weigh equity growth against the cost and flexibility of renting.
This output becomes useful when you compare it with a harder version. If a small change to one key input makes the answer wobble, that tells you the plan is more fragile than it first looked.
Ask one direct question: how long do I realistically stay in this property? That usually determines whether buying actually works financially.
Worked example: renting vs buying
Take a £325,000 property, £32,500 deposit (10%), 4.5% mortgage, £1,250 rent, and a 10-year horizon.
Scenario A: renting. Total rent paid over 10 years is about £172,000, assuming modest rent increases.
Scenario B: buying. Total costs including interest, maintenance and fees are higher, but equity builds to roughly £120,000 depending on price growth.
In this scenario, buying overtakes renting around year 7 and ends roughly £40,000 ahead in net position.
What your results mean
If break-even takes many years, short stays favour renting. If buying pulls ahead quickly, ownership is financially stronger over your expected timeframe.
What to do next
- If break-even is early and stable, buying is financially strong.
- If break-even is late or uncertain, renting may be safer for flexibility.
- If results swing heavily with assumptions, the decision depends on risk tolerance.
When to take further action
If affordability is tight, if deposit savings reduce emergency funds, or if future plans are uncertain, reviewing the decision carefully or delaying purchase can be the more stable option.
Where this can give false comfort
- When buyers often compare rent with just the mortgage and leave out maintenance, insurance, service charges and opportunity cost.
- When the result only looks strong because the easiest assumption was left untouched.
- When one headline figure distracts you from the actual cost or strain in the plan.
- When you treat a clean estimate as a promise rather than a planning tool.
Compare next
Change the input that does the real damage
Put these side by side and see which one changes the outcome in a way you would actually feel, not just in a spreadsheet sense.
Buy now vs keep renting?
Short stays usually favour renting. Longer stays allow buying to recover upfront costs and build equity.
Bigger deposit later vs sooner purchase?
A larger deposit reduces borrowing costs but delays entry. The trade-off is between earlier ownership and lower long-term cost.
Monthly payment vs total housing cost?
Comparing full housing cost rather than just mortgage vs rent usually changes the conclusion materially.
What this page cannot decide for you
It cannot predict provider decisions, personal underwriting, future rate moves or what your own circumstances do next. It is best used to rule out weak versions of housing decision, not to pretend one estimate settles everything.
The best way to use this result
Run three versions: the plan you could keep up without strain, the stronger version that still feels realistic, and the line where the plan starts to feel too stretched. That usually tells you more than hunting for one perfect number.
FAQ
Rent vs buy calculator questions people actually ask
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).
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