Buy vs Rent Calculator
Should you buy your next home or keep renting? This calculator compares the all-in cost of owning a UK property — mortgage interest, Stamp Duty Land Tax, maintenance, and Council Tax — against renting and investing your would-be deposit. The cheaper option depends as much on how long you stay as it does on the asking price.
How is this calculated?
Buying costs include SDLT, legal fees, surveys, mortgage interest paid (not capital repayment, which builds equity), insurance, maintenance at around 1% of property value per year, and Council Tax. Renting costs are annual rent plus Council Tax. The model invests the would-be deposit and any monthly cost difference at an assumed return so the opportunity cost of tying up capital in property is reflected fairly. House price growth and rent inflation can both be tuned.
Frequently Asked Questions
How long do I need to stay for buying to win?
The break-even point is usually 5–8 years. SDLT, legal fees, and survey costs are heavy upfront expenses that need time to be amortised. In flat or falling markets the break-even stretches further; in a rising market with low rates it shortens.
Why is mortgage interest treated as a cost but capital repayment isn't?
Interest is money paid to the lender that you never see again — a true cost, like rent. Capital repayment shifts cash from your bank account into equity in the property, so it is a transfer rather than an expense. Only interest belongs in a like-for-like comparison with rent.
What maintenance allowance is realistic?
A widely used rule of thumb is 1% of the property value per year for a freehold house, covering boiler servicing, roof, decoration, and the occasional larger repair. Leasehold flats need less direct maintenance but you should add the service charge and ground rent on top.
Does the calculator handle Help to Buy or shared ownership?
No, it models a standard repayment mortgage on a freehold or leasehold purchase. Shared ownership and equity loan schemes have their own rent-on-the-unowned-share and staircasing mechanics that materially change the comparison and need a bespoke model.
Last updated: May 2026 · Rates sourced from HMRC