Rent vs Buy Calculator UK

Compare the cumulative cost of renting with buying a UK home, then see the first modelled year in which buying breaks even under your assumptions.

Is it cheaper to rent or buy?

There is no universal UK answer. Buying tends to improve when you stay longer, mortgage costs are manageable and the home holds or gains value. Renting can remain cheaper when the comparison period is short, transaction costs are high or the renter invests the cash that would otherwise become a deposit and buying costs. The calculator therefore shows both cumulative net costs and the first modelled year in which buying becomes cheaper, if that crossover occurs within the period you select.

What the calculator includes

Renting side	Buying side
Starting monthly rent	Deposit and mortgage fee
Annual rent growth	Mortgage payments and outstanding balance
Return on the deposit and buying costs if invested	Stamp duty, legal costs and other one-off costs
Cumulative rent paid	Maintenance, insurance, service charge and ground rent
	Property-price growth, sale costs and equity at the end of each year

The buying result is cash paid minus the equity you would release after modelled selling costs. The renting result is rent paid minus the investment gain on the deposit and one-off purchase costs that the renter did not spend. Both are cumulative net costs, so a lower figure is better.

The buying break-even result is the first whole year where the modelled cumulative cost of renting is higher than the modelled cumulative cost of buying. It is not the month when a mortgage payment first falls below rent, and it can move sharply when you change house-price growth, mortgage rates, rent growth or investment returns.

Worked five-year example

Using the starting values shown on 24 October 2026, the model compares a £350,000 home with a 10% deposit and a 30-year mortgage at 5.25% against rent of £1,600 a month. It also assumes 3% annual property growth, 3% annual rent growth, a 4% renter investment return, 1% annual maintenance, £5,000 stamp duty and 2% selling costs.

On those assumptions, the monthly mortgage payment is about £1,739. Buying has a modelled cumulative net cost of roughly £25,241 after year one versus £17,468 for renting, so renting leads initially. The model crosses during year two. At year five, the cumulative figures are approximately £59,305 for buying and £92,555 for renting, a difference of about £33,249 in buying's favour.

That is an illustration, not a forecast. Setting property growth lower, increasing the mortgage rate or shortening the period can reverse the outcome. Use the stress controls to test an unfavourable case rather than relying on the default.

Assumptions and limitations

• Enter stamp duty manually. The calculator does not infer first-time buyer status, additional-property surcharges, non-resident rules or regional taxes. Check the current official residential SDLT rates and use the amount that applies to you.
• Results are nominal. They are not adjusted for inflation and do not predict future mortgage rates, rent, house prices or investment returns.
• The renter's investment return is modelled before platform charges and tax. ISA allowances, capital gains, dividend tax and individual portfolio costs are not calculated.
• The model does not invest every monthly cash-flow difference between rent and ownership. If one option is cheaper in a particular month, it does not automatically add that saving to a separate investment account.
• Maintenance is a simple percentage of the original property price each year. Large repairs, renovations and leasehold major works may be much less regular.
• Mortgage affordability, early-repayment charges, product changes, remortgage fees, moving costs and the risk of negative equity need separate consideration.

Use the result as a structured comparison of assumptions. Before making a housing decision, check actual mortgage quotes, tax, survey findings, lease terms and a realistic time horizon.