UK Tool
Rent vs Buy Calculator
Compare the full long-term cost of renting vs buying in the UK. Accounts for SDLT, mortgage interest, maintenance, rent growth, house price growth and the opportunity cost of your deposit.
UK historical: 3-4%
UK historical: 4-5%
If you kept the deposit invested
Verdict
Buy
Over 10 years
Breakeven Year
Year 1
Buying becomes cheaper
Rent Total (10yr)
£219,391
Rent + opportunity cost
Buy Net (10yr)
-£2,050
Costs minus equity built
Savings (if correct)
£221,440
Saved by buying
Upfront Cost to Buy
£55,800
Incl. £0 SDLT
Monthly Mortgage
£1,628
Home Value at Year 10
£518,085
Equity: £303,076
10-Year Total Cost Comparison
Rent: cumulative rent + opportunity cost of the deposit if invested. Buy: upfront + ongoing costs minus equity built.
Year-by-Year Breakdown
Green rows = buying ahead cumulatively.
| Year | Rent (cumu) | + Opp Cost | Buy (cumu) | Home Equity | Buy Net |
|---|---|---|---|---|---|
| Year 1 | £16,800 | £2,232 | £79,890 | £73,232 | £6,658 |
| Year 2 | £34,104 | £4,553 | £104,072 | £94,824 | £9,248 |
| Year 3 | £51,927 | £6,967 | £128,346 | £117,309 | £11,037 |
| Year 4 | £70,285 | £9,478 | £152,715 | £140,726 | £11,989 |
| Year 5 | £89,193 | £12,089 | £177,181 | £165,114 | £12,067 |
| Year 6 | £108,669 | £14,805 | £201,745 | £190,512 | £11,233 |
| Year 7 | £128,729 | £17,629 | £226,409 | £216,962 | £9,447 |
| Year 8 | £149,391 | £20,566 | £251,176 | £244,509 | £6,667 |
| Year 9 | £170,673 | £23,621 | £276,048 | £273,198 | £2,850 |
| Year 10 | £192,593 | £26,798 | £301,026 | £303,076 | -£2,050 |
Upfront Costs to Buy
Deposit£52,500
Stamp Duty (SDLT)£0
Legal / conveyancing fees£1,500
Survey£800
Mortgage arrangement fee£1,000
Total upfront£55,800
How this works
- • Opportunity cost assumes your deposit + fees could otherwise earn 4% / year.
- • Buying includes mortgage, ~1% maintenance, 0.3% buildings insurance — each inflating 2% / year.
- • Home equity = property value (grown at 4% / year) minus outstanding mortgage.
- • Buy Net = total paid to own the home minus the equity you've built. Lower is better.
- • Breakeven = the year Buy Net first drops below Rent + Opportunity Cost.