Rent vs Buy Calculator

Comparison

Both sides start with the same cash and use the same monthly budget. If renting costs £500 less, the renter invests £500; if buying costs less, the buyer invests the saving.

Currency

Years compared Extra months

Renting

Monthly rent Annual rent increase %

Buying

Property price Deposit

Mortgage term years Mortgage rate %

Growth, costs and mortgage options

Growth assumptions

Annual property growth % Annual investment return after fees %

Mortgage options

Mortgage type

Initial rate years Extra months Following rate %

Leave the initial-rate period at zero to use one mortgage rate throughout.

Buying and selling costs

Purchase tax or duty Other purchase costs

Selling costs % Annual maintenance %

Annual service or other costs Annual cost increase %

Renting costs and sensitivity

Rental deposit months Other renter upfront costs

Sensitivity spread ± %

Buying net worth —

Renting net worth —

Difference at end —

First buying break-even —

Projected home value —

Mortgage balance —

Comparison summary

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Sensitivity

Changes property growth and investment return in opposite directions by the selected spread.

Case	Property growth	Investment return	Difference

Year-by-year breakdown

Period	Buying net worth	Renting net worth	Home value	Mortgage	Buyer housing paid	Rent paid

How the comparison works

Both choices begin with the same available cash. The buyer uses some for the deposit and purchase costs; the renter keeps a refundable rental deposit and invests the cash left over. Every month, the cheaper option invests the difference so neither side gets an unfair spending advantage. Buying net worth is the money left after selling the home and repaying the mortgage, plus investments. Renting net worth is investments plus the returned rental deposit.

This is an illustrative scenario, not a forecast or financial advice. Returns and property prices can fall. Enter taxes and local costs yourself; the calculator does not maintain jurisdiction-specific rules.