Rent vs buy calculator
Rent vs buy calculator
The cash cost of renting set against the cash cost of owning over the years you plan to stay: mortgage interest, stamp duty and maintenance on one side, rent and rent inflation on the other.
Cost of renting
£385,186
Cost of owning
£396,640
Buying wins after
Beyond 10 years
Based on the current UK average of 4.68% for a 5-year fix at 75% LTV — Bank of England, July 2026. Updated monthly. Reference data only, not a product offer.
Mortgage payment of £3,849 a month, stamp duty of £32,500 on completion.
| Year | Cumulative rent | Cumulative ownership cost |
|---|---|---|
| 1 | £33,600 | £72,512 |
| 5 | £178,387 | £225,194 |
| 10 | £385,186 | £396,640 |
Indicative only. This is not financial advice, a mortgage offer or a tax computation. Confirm the figures with a qualified broker, solicitor or tax adviser before you commit.
Questions we get asked
- What counts as the cost of buying here?
- Mortgage interest, stamp duty on the purchase and an annual maintenance allowance as a percentage of value. Capital repaid is excluded because it stays yours, and so is any change in the value of the property.
- Why does buying take several years to win?
- Stamp duty and fees land in year one, and the early years of a mortgage are almost all interest. Renting looks cheaper until those upfront costs are spread across enough years and rent inflation catches up.
- What rent inflation should I assume?
- Three per cent a year is a reasonable long-run assumption for London, though the last few years have run hotter. Try four or five per cent to see how much sooner buying pulls ahead.
- Does this account for house price growth?
- No, deliberately. Adding a growth assumption flatters buying and depends entirely on the number you pick. This is a pure cash comparison; any capital growth is upside on top.