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Rent vs Buy Calculator UK — Should You Buy a Home?

Rent vs Buy Calculator

Compare the true cost of buying — mortgage, stamp duty, fees and upkeep minus the equity you build — against renting over your time frame, and find the break-even year. Free PDF report.

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Get your rent vs buy report — free PDF

  • Net cost of buying vs renting over your time frame
  • The break-even point where buying wins
  • Equity built vs rent paid, year by year
  • How growth assumptions change the answer

This calculator is a guide only and not financial advice. It uses simplified assumptions for house-price growth, rent growth, maintenance (~1%/yr), buying/selling fees and England/NI stamp duty at standard rates. Real outcomes depend on the market and your circumstances. Your home may be repossessed if you do not keep up mortgage repayments.

How the rent vs buy calculator works

“Should I rent or buy?” is one of the biggest money decisions you will make, and the honest answer is “it depends”. This calculator settles it for your own numbers by comparing the true cost of buying — mortgage interest, stamp duty, fees and ongoing maintenance, minus the equity you build — against the cost of renting the same home over the years you plan to stay.

Enter the property price, your deposit, the mortgage rate and term, the rent for a similar home, and how long you expect to stay. The calculator finds your break-even point: the number of years after which buying becomes cheaper than renting. It assumes the renter invests the deposit they would otherwise tie up, so the comparison is fair. The free PDF includes a year-by-year breakdown.

As a rough guide, buying tends to win the longer you stay, because you build equity instead of paying a landlord. Work out your repayments and stamp duty in detail with our mortgage calculator, and if you are saving a deposit, a Lifetime ISA adds a 25% government bonus towards a first home.

Frequently asked questions

Is it cheaper to rent or buy in the UK?
It depends on how long you stay, the price, your deposit, the mortgage rate and how much rents and house prices change. Buying usually wins over the long term once you pass the break-even point, because you build equity instead of paying a landlord. This calculator works out that break-even year for your numbers.
What is the break-even point for buying a home?
It is the number of years you need to own before the total cost of buying (including stamp duty, fees, interest and maintenance, less the equity you build) becomes cheaper than renting the same home.
What costs come with buying a home?
On top of the deposit and mortgage, expect stamp duty, legal and survey fees, ongoing maintenance (often estimated at around 1% of the value a year), insurance, and selling costs such as estate-agent fees when you move.
Does buying always beat renting?
No. If you might move within a few years, the upfront costs of buying — stamp duty, legal fees and the early years of a mortgage where most of the payment is interest — can make renting cheaper. Buying tends to win only once you stay past the break-even point.
How much deposit do I need to buy?
Most lenders want at least 5–10% of the property price, but a bigger deposit unlocks lower mortgage rates and smaller monthly payments. Try different deposits in the calculator to see the effect on your break-even point and total cost.
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