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.
Buying
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Leasehold or flat service charge. Enter 0 for freehold.
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Defaults to 1% of property price if left blank.
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1 year30 years
I am a first-time buyer
Renting
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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.