Household Bills & Lifestyle2 min check

Rent vs Buy Calculator

Compare the 5-year net cost of renting against buying — including mortgage interest, fees, maintenance and equity built up.

Short answer

Buying wins long-term once equity build-up + house price growth outpace mortgage interest, fees, maintenance and stamp duty. We compare 5-year total cost. Rule of thumb: buy if you'll stay 5+ years and the deposit + fees won't drain your emergency fund.

Step 1 of 20%

Calculation method, coverage and version

Inputs used: Monthly rent (£), Expected annual rent rise (%), House price (£), Deposit (£), Mortgage interest rate (%), Mortgage term (years), Buying fees — legal, survey, mortgage (£), Stamp Duty (£), Annual maintenance % of value, Expected house price growth %/year.
Calculation approach: The calculator applies the rules and assumptions described in “How it works” to the values you enter. Rounding can cause small differences from an official or provider calculation.
Coverage: Household Bills & Lifestyle. UK nations, tax treatment, local rules and provider criteria can differ; check the official sources shown below before acting.
Content version: No page-specific review date is currently published. Treat the result as indicative and verify current rules independently.

Not included unless explicitly requested: personal circumstances not entered, provider discretion, future rule changes, professional fees and case-specific exceptions. Read the full calculator methodology.

How it works

We total 5 years of rent (with annual rises) vs all the cash a buyer pays out — deposit, fees, stamp duty, mortgage payments and maintenance — minus the equity they own at year 5 (deposit + principal repaid + price growth − remaining mortgage).

Worked example

£275k house, 10% deposit, 4.5%/30y, 3% price growth vs £1,100 rent rising 4%/year. Mortgage £1,114/m, 5y interest £55k, equity ~£82k, net cost ~£42k vs rent ~£71k → Buy wins by £29k.

Who should use this

•First-time buyers weighing the decision
•Renters in areas with rapid rent rises
•Anyone considering a 5+ year commitment

Common mistakes

×Ignoring buying/selling costs (~5% of price round-trip)
×Forgetting maintenance — typically 1% of value/year
×Assuming high price growth — be conservative
×Buying when you might move within 3 years

Frequently asked questions

When is renting better?▾

Short stays (<3 years), uncertain career/area, or when the deposit would wipe out emergency savings.

How much deposit do I need?▾

5% minimum for many lenders. 10–15% gives better rates. 25%+ unlocks the best deals.

Are mortgage payments cheaper than rent?▾

Often similar. The financial gain comes from building equity, not lower monthly cost.

Related calculators

Mortgage Affordability →Stamp Duty Calculator →Mortgage Repayment →Moving Cost Calculator →