Rent vs Buy Calculator guide
Rent vs Buy Calculator: Which Leaves You Better Off?
Use our rent vs buy calculator to compare the wealth you'd build by buying a home with renting and investing the difference.
By the AllCalculator editorial teamUpdated 16 October 20261 min read
Is it better to buy or rent? It depends on house prices, rents, interest rates and how long you'll stay. Our Rent vs Buy Calculator compares the two side by side.
How to use the calculator (Rent vs Buy Calculator)
- Enter the property price, deposit, mortgage rate and term.
- Enter buying costs and yearly maintenance.
- Enter the rent and how fast it rises.
- Enter expected house price growth and the return a renter could get on savings.
- Choose how many years to compare.
How it works
- The buyer builds equity: the home's value minus the mortgage left.
- The renter invests the deposit and buying costs instead, plus any month when owning costs more than renting (and draws on it when rent costs more).
A worked example
With the calculator's default settings, over 10 years buying a £300,000 home comes out ahead by about £99,000, but the result depends heavily on house prices and investment returns.
Frequently asked questions
What does it leave out?
Selling costs, tax, and the non-money benefits of each, such as security or flexibility.
How long should I stay to make buying worthwhile?
Usually several years, so the buying costs are spread out. The calculator lets you try different periods.
Sources and further reading
Links open official and independent websites in a new tab.
This guide is general information to help you understand your options. It isn't financial, tax, legal or building advice and doesn't take your personal circumstances into account. Figures were checked when the guide was last updated and can change, so confirm anything important with GOV.UK, HMRC, a regulated adviser or a qualified tradesperson.