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Rent vs Buy Calculator

England & Northern Ireland · Scotland · Wales · Same starting cash, both sides
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Adds a 2% SDLT surcharge on each band — England & Northern Ireland only. You can reclaim the 2% if you spend 183 days in the UK within any continuous 365-day period ending no later than 365 days after completion. The claim itself must be made within 2 years of completion, by amending your SDLT return. See our non-resident surcharge guide.
Break-even: Year 5 at 3% house-price growth.
At 1% growth: none within 10 years. At 5% growth: Year 2.
House-price growth is the input this result is most sensitive to. Try changing it. If growth stays at the low end of this range, renting comes out ahead within your 10-year horizon.
Upfront cash needed
£60,250
Monthly payment
£1,722
Buyer wealth · year 10
£241,783
Renter wealth · year 10
£211,426
Buying ahead

On these numbers, buying is ahead by £30,357 after 10 years at 3% house-price growth.

YearBuyer wealthRenter wealth
1£62,013£73,691
2£79,147£87,483
3£96,927£101,634
4£115,378£116,152
5 · break-even£134,527£131,045
6£154,403£146,321
7£175,036£161,989
8£196,455£178,057
9£218,693£194,533
10£241,783£211,426

Buyer and renter wealth stay within 5% of each other in years 3–5: the crossover is a band, not a date.

How this works and what it assumes. This tool compares two people with the same starting cash: one buys, one rents and invests the difference. Figures are nominal (not inflation-adjusted) and before tax on investments. A main home is exempt from Capital Gains Tax, but in reality a renter's investments may face tax above the ISA allowance, which this version does not model. It also assumes your mortgage rate stays the same for the whole period, when in practice you'll remortgage every few years, usually paying a product fee each time. Conversely it leaves out a renter's moving costs and occasional gaps between tenancies, and these two roughly offset. Growth is applied monthly, so figures a month in are already fractionally above the starting values. Defaults (house-price growth 3%, rent growth 3%, investment return 5%, maintenance 1%) are central estimates from ONS and lender data, and your result is highly sensitive to them, so adjust and stress-test. Buying costs (~1.5%) and selling costs (~2%) are approximate. The default rent is estimated from a typical ~3.9% gross yield for a home at this price, not a national average, so replace it with your actual local rent. This is an educational model, not financial, mortgage or tax advice; speak to an FCA-authorised broker or adviser before deciding.

How the comparison works

This isn't a monthly-payment comparison. It's a wealth comparison, and here's the model in four steps.

Two people, the same starting cash
One buys; one rents and invests what the buyer put into the deposit, stamp duty and fees.
Every month, the cheaper option invests the difference
Whoever spends less that month puts the gap into their own pot, buyer or renter. Most calculators only let the renter do this, which quietly favours buying.
Compare total wealth, not monthly payments
The buyer's is equity after selling costs plus any investments; the renter's is their invested pot.
Break-even is the first year the buyer pulls ahead
Shown across cautious, central and optimistic growth, because the answer moves by years.

Frequently asked questions

Because the answer moves by years depending on assumptions nobody can predict, above all house-price growth. The tool always shows break-even at cautious, central and optimistic growth so you can see how wide the spread is. If your decision flips between those three, that is itself the finding: the honest answer is that it is close, and the things the model cannot price, like flexibility and security, should carry more weight.

It sets what the renter earns on the money they do not tie up in a deposit and fees, plus anything they save each month. It also applies to a buyer in months when their outlay is lower than the rent. After house-price growth it is the largest lever in the model, so it is worth testing a range rather than accepting the default.

Turning it off means neither side earns anything on money they do not spend. That makes buying look considerably better, because the renter stops getting credit for investing the deposit and fees. Leaving it on is the fairer comparison, which is why it is on by default.

How long you realistically expect to keep the property, not how long the mortgage runs. Buying and selling costs are paid once, so a short stay rarely recovers them. If your plans are genuinely open, try several horizons and see whether the verdict changes.

It is estimated as a gross yield of roughly 3.9 percent on the price you enter, not a national average rent. The two describe different homes. Replace it with the actual rent for somewhere you would genuinely live, because a rent that does not match the property is the quickest way to get a misleading answer.

This version works in nominal, pre-tax terms. A main home is exempt from Capital Gains Tax, but a renter's investments may be taxed above the ISA allowance, which the model does not include. A narrow win for renting should therefore not be read as decisive.

Yes, by more than most people expect. In England and Northern Ireland it adds 2 percentage points to every stamp duty band, which on a 350,000 pound first purchase raises the bill from 2,500 pounds to 9,500 pounds. Because that is a one-off sunk cost the renter never pays, it pushes break-even out by about two years on the default scenario. Scotland and Wales do not apply it.

Ready to take the next step?

You've seen your break-even range. The next step is turning it into a real decision: confirming what you can actually borrow, and what a mortgage would really cost each month. A whole-of-market broker can search hundreds of lenders, confirm your borrowing power, and arrange a Decision in Principle at no cost and without leaving a mark on your credit file. Want the full thinking behind these numbers, including where renting genuinely wins? Read our Rent vs Buy guide.

Find an FCA-authorised broker ↗

Always check your broker is registered on the FCA Financial Services Register before proceeding.

Related Tools & Guides

Break-even is only part of the picture. These tools help you price the rest of the decision.

Rent vs Buy Guide

The thinking behind the numbers, and the cases where renting genuinely wins.

Read guide →
Total Cost of Buying Calculator

What the purchase itself costs, before any of this starts.

Calculate →
Mortgage Affordability Calculator

What a lender would actually agree to lend you.

Calculate →
Stamp Duty Calculator

The tax bill on its own, across all three UK systems.

Calculate →

Sources & Methodology

Sources

Important: This calculator provides illustrative estimates only and does not constitute financial or tax advice. Tax rules and mortgage products change — always verify figures with HMRC, Revenue Scotland, or the Welsh Revenue Authority before completing a purchase. For personalised mortgage advice, speak to an FCA-authorised broker.

Your home may be repossessed if you do not keep up repayments on your mortgage.