Rent or Buy Calculator: Is Buying Better Than Renting?
See which leaves you with more wealth after a number of years, using stamp duty, mortgage payments, upkeep, rent rises and investment growth.
| Buy | Rent and invest | |
|---|---|---|
| Monthly cost at the start | £1,828 | £1,300 |
| Upfront cost (deposit, stamp duty, fees) | £37,000 | £0 |
| Property value after 15 years | £467,390 | n/a |
| Mortgage left to pay | £148,813 | n/a |
| Net wealth after 15 years | £309,229 | £147,722 |
Buying includes £5,000 stamp duty, about £2,000 of other buying costs, upkeep of 1% of the price a year and 2% selling costs; the mortgage runs over 25 years. The renter invests the deposit, the buying costs and any monthly saving compared with owning. Prices, rents and investments are uncertain and this is a planning guide, not advice.
How the comparison works
The calculator follows two versions of your life. In one you buy: you pay the deposit, stamp duty and fees, then the mortgage and upkeep every month. In the other you rent: you invest the deposit and the buying costs, and each month you invest whatever buying would have cost more than the rent.
At the end it adds up what you own in each case. Buying counts the property value after selling costs, minus the mortgage left. Renting counts your investments.
Example: on a £300,000 home with a £30,000 deposit against £1,300 rent, after 15 years buying comes out £161,508 ahead on the assumptions above.
What affects the answer most
- House price growth against investment growth. Buying wins when homes rise faster than your investments would.
- How long you stay. Stamp duty and fees are a big one-off cost, so buying rarely wins over only a few years.
- Rent against mortgage cost. Where rent is much lower than the monthly cost of owning, renting and investing has an advantage.
What it leaves out
Ground rent and service charges, mortgage fees, tax on investment gains outside ISAs, changes in your mortgage rate after a fixed period, and the non-financial side: security of tenure, freedom to decorate, and the chance to move easily. Treat the result as one input, not a verdict.
Work out the stamp duty with the stamp duty calculator and your payments with the mortgage calculator.
Sources: GOV.UK: SDLT residential rates. Figures last checked on 8 October 2026.
Frequently asked questions
Is it cheaper to rent or buy in the UK?
It depends on the price, the rent, how long you stay, and how fast house prices and investments grow. Renting is often cheaper month to month; buying can build more wealth over a long period if prices rise.
How long do you need to stay for buying to make sense?
Because of stamp duty, legal fees and selling costs, buying usually needs at least five years to beat renting, and often longer.
What does the calculator include for buying costs?
Stamp duty for the nation you pick, about £2,000 for legal, survey and moving costs, upkeep of 1% of the price a year and 2% selling costs at the end.
Does the calculator include tax on the investments?
No. It assumes growth after charges and tax, so enter a return net of tax. Using an ISA keeps investments tax-free.
More from UK Answers
Figures are for the 2026/27 tax year from official sources and are estimates for guidance only, not financial or legal advice. Printed from ukanswers.co.uk.