Rent vs Buy Calculator

Should you rent or buy in the UK? Compare the total cost of buying a property against renting over your timeframe. Includes stamp duty, mortgage payments, property growth and investment returns. Updated for 2025.

Renting versus buying is rarely as simple as “paying someone else's mortgage.” The true comparison depends on deposit opportunity cost, house price growth assumptions, mortgage rates, maintenance costs, and how long you plan to stay. This calculator does the maths so you can make a decision based on your actual numbers, not rules of thumb.

In many UK cities, the monthly cost of renting is now comparable to a mortgage repayment. But buying comes with stamp duty, solicitor fees, surveys, and ongoing maintenance that renters avoid. On the other hand, homeowners build equity and benefit from long-term capital growth.

The Office for National Statistics reported that the average UK house price reached £285,000 in December 2024, while average private rents in England rose 8.7% year-on-year (ONS). Both figures underline why running the numbers for your specific situation matters.

How this calculator works

  1. Enter the property price, deposit, mortgage rate, and your current monthly rent.
  2. Set your expected time horizon, house price growth assumption, and alternative investment return.
  3. The tool compares the total cost of each option over your chosen period, accounting for stamp duty, maintenance, mortgage interest, and the opportunity cost of your deposit.

Written by the CalcStack team · Last updated April 2026

Buying

£
£
%
£

Leasehold or flat service charge. Enter 0 for freehold.

£

Defaults to 1% of property price if left blank.

%
1 year30 years
I am a first-time buyer

Renting

£
%
%

What you would earn if your deposit was invested instead.

Frequently asked questions

Is it cheaper to rent or buy in the UK right now?▾
It depends on your location, deposit size, interest rates, and how long you plan to stay. In many UK cities, buying becomes cheaper than renting after 5-8 years, but this varies significantly. Use this calculator with your actual numbers to find your personal break-even point.
How much deposit do I need to buy a house?▾
Most lenders require a minimum 5-10% deposit. A larger deposit (15-20%) will get you better interest rates and lower monthly payments. First-time buyers may qualify for government schemes with smaller deposits.
What is stamp duty and when do I pay it?▾
Stamp duty land tax (SDLT) is a tax paid when you buy property in England and Wales. In 2025, the rates are: 0% up to £250,000, 5% on £250,001-£925,000, 10% on £925,001-£1,500,000, and 12% above that. First-time buyers pay 0% up to £425,000 on properties up to £625,000.
What costs does this calculator include for buying?▾
The buying calculation includes your deposit, stamp duty, monthly mortgage payments, service charges, and annual maintenance. It subtracts the equity you build through mortgage repayments and property price growth to give a net cost figure.
How does the opportunity cost of the deposit work?▾
If you rent instead of buy, your deposit money could be invested. This calculator models the return you would earn on that invested deposit (default 5% per year) and subtracts it from your renting costs. This gives a fairer comparison.
What mortgage interest rate should I use?▾
Use the rate you have been offered or are likely to get. As of 2025, typical UK fixed rates are around 4-5% for a 2-5 year fix. Remember that rates can change when your fix ends. The sensitivity analysis in the pro report shows what happens if rates rise or fall.
Does this calculator account for house price growth?▾
Yes. You can set the expected annual property growth rate (default 3%). The calculator compounds this year by year. The pro report includes optimistic and pessimistic scenarios with different growth assumptions.
What about buying costs like solicitor fees and surveys?▾
This calculator focuses on the main ongoing costs. One-off buying costs such as solicitor fees (£1,000-£2,000), surveys (£300-£1,500), and mortgage arrangement fees (£500-£2,000) are not included but would increase the total cost of buying.
Should I factor in rental deposit vs house deposit?▾
A rental deposit (typically 5 weeks’ rent) is much smaller than a house deposit and is returned at the end of your tenancy. This calculator focuses on the house deposit since it is the major capital outlay that has an opportunity cost.
How accurate is the break-even year calculation?▾
The break-even year is a useful guideline but not a guarantee. It assumes constant growth rates, fixed interest rates, and steady rent increases. Real markets fluctuate. Use it as a planning tool alongside professional financial advice.

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© 2026 CalcStack — a Flavoureak UK Ltd product. This calculator provides estimates for comparison purposes only. It is not financial advice. Stamp duty rates are based on 2025 England/Wales rates. Always seek professional advice before making property decisions.