About this calculator
This calculator compares your estimated net position if you buy versus rent over the years you might stay. Future growth and returns start at 0% so nothing is forecast for you.
How the calculation works
Buying: home value − remaining mortgage − selling costs. Renting: deposit and purchase costs invested, plus or minus the monthly difference between owning and renting costs.
Worked examples
£300,000 home vs £1,300 rent over 10 years
With zero growth: renting ahead by £11,954.
Short stays favour renting
Buying and selling costs are paid upfront, so over 2–3 years renting often comes out ahead.
Investment returns matter
If the renter's savings earn a return, the break-even year moves later. Try 3% and 5% in the sensitivity table.
What changes the result?
- How long you stay.
- House price growth.
- Investment return on a renter's savings.
- Mortgage rate.
Common mistakes
- Comparing rent with the mortgage payment alone.
- Forgetting maintenance and selling costs.
- Treating a scenario as a forecast.
Frequently asked questions
Is buying always better than renting?
No. It depends on how long you stay, prices, rates and returns.
Why do growth assumptions start at 0%?
So the result isn't driven by a forecast we can't know. Set your own.
What is the break-even year?
The first year when buying's net position overtakes renting's.
Does it include tax?
No.
What does the sensitivity table show?
How the result changes with different price growth and investment returns.