Rent vs Buy Calculator
Compare the true cost of renting vs buying a home over time.
Rent and buy inputs
Enter purchase, mortgage, rent, growth, and ownership-cost assumptions.
Currency
Estimated purchase price.
Percent paid upfront.
Annual mortgage interest rate.
Mortgage repayment term.
Annual tax as percent of home price.
Estimated monthly homeowners insurance.
Annual maintenance as percent of home price.
Optional monthly ownership fee.
Buying transaction costs.
Estimated future selling costs.
Estimated home value growth.
Current monthly rent.
Expected annual rent growth.
Opportunity cost of upfront cash.
How long you expect to stay.
Better estimated option
Buy
Buying is ahead by about £4,356.47.
Cost difference
£4,356.47
Difference between estimated renting and buying net costs.
Net buying cost
£197,932.53
Buying outlay minus estimated home equity.
Net renting cost
£202,289.00
Total rent paid over the time horizon.
Monthly ownership cost
£2,875.95
Mortgage, tax, insurance, maintenance, and HOA.
Monthly mortgage payment
£2,022.62
Principal and interest only.
Home equity
£202,617.56
Future home value minus remaining loan balance.
Opportunity cost
£37,453.24
Estimated growth of upfront cash if invested.
Break-even year
Year 7
Year when buying becomes cheaper under these assumptions.
Future home value
£491,949.55
At 3.0% appreciation for 7 years.
Support
Housing decision support layer
Scenario based
Uses your assumptions for rent, mortgage, taxes, insurance, maintenance, appreciation, and investment return.
Estimate only
Results are educational estimates and do not include every personal, tax, legal, or market factor.
Decision focused
The result compares estimated net costs, but lifestyle flexibility and risk tolerance also matter.
Interpretation
What your rent vs buy result means
Buying scenario
Buying has an estimated net cost of £197,932.53 over 7 years.
Renting scenario
Renting has an estimated cost of £202,289.00 over the same period.
Equity effect
Your estimated home equity before selling costs is £202,617.56.
Opportunity cost
The upfront buying cash could grow by about £37,453.24 if invested at the assumed return.
Housing basics
How rent vs buy comparisons work
Buying costs
Buying includes mortgage payments, taxes, insurance, maintenance, transaction costs, and selling costs.
Renting costs
Renting mainly includes monthly rent and rent increases, but it may offer more flexibility.
Upfront cash
Down payment and closing costs are major cash outflows that could otherwise be invested.
Home equity
Equity can grow from principal repayment and appreciation, but appreciation is not guaranteed.
Comparison
Renting vs buying trade-offs
Renting
Flexibility
Renting can be easier for shorter time horizons, uncertain plans, lower upfront cash, or avoiding maintenance responsibility.
Buying
Equity potential
Buying may become more attractive with a longer stay, strong appreciation, manageable mortgage cost, and stable ownership expenses.
Cost drivers
What affects the break-even point
Time horizon
Longer stays give equity and appreciation more time to offset transaction costs.
Mortgage rate
Higher rates increase mortgage payments and interest cost.
Taxes and maintenance
Ongoing ownership costs can materially change the comparison.
Rent growth
Faster rent increases can make buying more competitive over time.
Home appreciation
Appreciation can improve buying outcomes, but home values can also stagnate or fall.
Transaction costs
Closing and selling costs can make buying less attractive for short stays.
Formula
Rent vs buy formula explanation
Net buying cost
Buying Cost = Cash Outflows + Opportunity Cost − Home EquityBuying cost includes mortgage payments, down payment, taxes, insurance, maintenance, fees, selling costs, and opportunity cost.
Renting cost
Renting Cost = Sum of Monthly Rent Over TimeRent is increased each year by the rent growth rate entered in the calculator.
Cost difference
Difference = Renting Cost − Buying CostA positive difference means buying is cheaper under the assumptions. A negative difference means renting is cheaper.
FAQ
Rent vs buy calculator questions
It depends on your time horizon, rent growth, mortgage rate, home price, maintenance, taxes, and lifestyle needs. This calculator compares estimated costs based on your inputs.