Rent or buy?
Buying costs more up front but builds a home you own. See when buying pulls ahead of renting on your figures.
Your answer
Enter the price, deposit, mortgage rate, rent and how long you'd stay.
About this calculator
For renters weighing up buying a home to live in, in England or Northern Ireland. It's a rough guide, not mortgage or investment advice.
What happens to your answers
We don’t keep them. Your answers go to our server to do the sums and aren’t stored or logged. If you copy a link to your answers, they’re in the link itself, so only share it with people you trust.
How it’s worked out
We follow both paths month by month. Both spend the same cash: the renter saves the deposit, stamp duty and buying costs, and whoever's month costs less saves the difference. Buying is worth the home if sold, less selling costs and the mortgage left, plus any savings. Renting is worth its savings.
Worked example
Buying pulls ahead of renting after 8.5 years. After 10 years, buying leaves you about £3,597 better off.
Home prices +2% a year · rent +3% a year · savings earn 4% a year · upkeep and insurance 1% of the value a year · buying costs £2,500 plus stamp duty · selling costs 2% · first-time buyer · England or Northern Ireland stamp duty
| Deposit | £30,000 |
|---|---|
| Stamp duty, with first-time buyer relief | + £0 |
| Other buying costs (solicitor, survey) | + £2,500 |
| Cash to buy (a renter saves this instead) | £32,500 |
| Mortgage repayment on £270,000 at 4.5% over 25 years | £1,500.75 a month |
| After 1 year: home £306,000, mortgage left £264,019; buying £35,861 against renting £44,223 | − £8,361 |
| After 5 years: home £331,224, mortgage left £237,216; buying £87,383 against renting £93,111 | − £5,728 |
| After 10 years: home £365,698, mortgage left £196,178; buying £162,206 against renting £158,610 | £3,597 |
A month-by-month comparison over 40 years. Stamp duty uses HMRC's residential rates for England and Northern Ireland; everything else uses your assumptions. "Pulls ahead" means buying stays ahead from then on.
Questions people ask
Why does a short stay favour renting?
Stamp duty, buying and selling costs are paid once. The longer you stay, the more years they're spread over.
Is tax on savings included?
No. We assume the renter's savings are tax-free, as in an ISA. A home you live in is normally free of Capital Gains Tax when you sell.
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