Compare buying a home with renting by looking at mortgage payments, rent, Stamp Duty, house price growth, investment returns, ownership costs and your break-even year.
Start with the simple numbers below. The advanced assumptions are already set to sensible defaults, but you can open them for a more detailed comparison.
This table shows how the result changes over time. The break-even year is the first year where buying becomes financially ahead of renting based on the assumptions entered above.
| Year | Buyer position | Renter position | Difference |
|---|
If you may move within 3 years, renting can be safer because buying and selling costs are high.
A renter can invest their deposit, while a buyer locks it into the property.
Owners pay for repairs, boilers, roofs and general upkeep. Renters usually avoid these costs.
A small mortgage rate change can move the break-even year by a lot.
If rent rises quickly, buying may become more attractive over time.
Home equity is not cash. You usually need to sell or remortgage to access it.
A Lifetime ISA can help, but the property price cap and withdrawal charge can catch people out.
Try cautious, normal and optimistic assumptions before trusting one result.
The calculator compares two possible paths. The buying path estimates your mortgage payment, property tax, buying fees, ownership costs, future property value, remaining mortgage balance and selling costs. The renting path estimates your rent over time and the potential growth of the money you did not use for a deposit, Stamp Duty and buying costs.
The final result compares the buyer’s estimated position against the renter’s estimated investment position. It also looks for the first year where buying moves ahead of renting, which is shown as the break-even year.
It depends on the property price, rent, mortgage rate, deposit, tax, maintenance costs, investment returns and how long you expect to stay. Buying often works better over the long term, while renting can be stronger over shorter periods.
The break-even year is the first year where the buyer’s estimated equity and savings overtake the renter’s investment position.
Yes. The calculator includes property tax logic for England and Northern Ireland, Scotland and Wales, with options for first-time buyers, home movers and additional property purchases.
A fair buy vs rent comparison should include what a renter could do with the deposit, property tax and buying costs if they did not buy. That money could potentially grow in savings, investments or an ISA.
Homeowners are responsible for repairs, maintenance and replacements. Renters usually avoid many of these costs because the landlord is responsible for the property.
No. Rent pays for somewhere to live and provides flexibility. Renting can be financially sensible if buying costs are high, you may move soon, or the renter invests the money that would have gone into a deposit and buying costs.
A Lifetime ISA can help first-time buyers because of the government bonus, but there are rules, limits and property price restrictions. This calculator includes a simple 25% bonus toggle for comparison purposes.
The simple inputs are enough for a quick comparison. The advanced assumptions are better if you want a more realistic result including maintenance, selling fees, service charges, insurance, rent growth and investment growth.
