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Buy versus rent calculator

Compare two user-controlled nominal scenarios without pretending to forecast house prices, rent or investment returns. Both sides invest any monthly cost advantage.

Your two scenarios

Every growth and return figure is editable. Results update locally and are not predictions.

Buying

The buying scenario price.

Cash committed to the purchase.

Held constant in this scenario.

A whole number from 1 to 50.

Include tax, legal and other cash costs.

Deducted from buyer equity at comparison points.

Renting and time period

Starting rent for the renting scenario.

A whole number from 1 to 50.

Scenario assumptions

Use cautious alternatives and inspect the sensitivity table.

Your scenario, not a forecast.

Your scenario, not a forecast.

Applied to unspent cash and monthly differences.

Editable ownership allowance.

Ownership cost only.

Enter £0 if it does not apply.

Scenario net-position difference

£43,094.54

buying scenario higher after 10 years—not a recommendation

Buyer net position
£174,419.21
Renter net position
£131,324.66
Buyer equity after selling costs
£174,419.21
Renter investment balance
£131,324.66
Buyer cumulative cash paid
£260,084.74
Renter cumulative rent paid
£165,746.02
Break-even checkpoint: Year 4

Important: This compares assumptions; it does not predict prices, rent, investment returns or which choice will be better.

Important: Your home may be repossessed if you do not keep up repayments on your mortgage.

Sensitivity table

Home-price change and investment return vary by two percentage points around your entries. Positive differences mean the buying scenario’s net position is higher.

Home changeInvestment returnBuyerRenterDifference
0%2%£108,720.88£111,338.26-£2,617.37
0%4%£108,720.88£131,324.66-£22,603.78
0%6%£108,720.88£154,772.99-£46,052.11
2%2%£174,419.21£111,338.26£63,080.95
2%4%£174,419.21£131,324.66£43,094.54
2%6%£174,419.21£154,772.99£19,646.22
4%2%£252,794.17£111,338.26£141,455.91
4%4%£252,794.17£131,324.66£121,469.50
4%6%£252,794.17£154,772.99£98,021.18

Annual text comparison

A complete text equivalent for the changing positions through time.

YearBuyerRenterDifference
1£50,649.04£64,546.59-£13,897.55
2£62,677.60£72,086.82-£9,409.23
3£75,099.99£79,614.26-£4,514.27
4£87,931.14£87,122.12£809.02
5£101,186.59£94,603.19£6,583.40
6£114,882.52£102,049.86£12,832.65
7£129,035.80£109,454.09£19,581.71
8£143,664.00£116,807.37£26,856.63
9£158,785.45£124,100.72£34,684.72
10£174,419.21£131,324.66£43,094.54

Calculation buy-vs-rent@1.0.0. Nominal scenario values; no product, property or investment is recommended.

Assumptions used

  • All results are nominal: inflation is not removed.
  • Growth and return inputs are user-controlled scenarios, not forecasts.
  • The mortgage rate stays unchanged and repayments are calculated monthly.
  • The renter invests the buyer’s unspent deposit and buying costs at the entered return.
  • Each side invests any monthly housing-cost advantage over the other.
  • Investment growth is applied monthly before that month’s contribution.
  • Buyer equity deducts the entered selling cost at every comparison point.
  • Tax, fees and maintenance are included only through the values entered by the user.

How the comparison works

The buyer starts with property equity and a mortgage; the renter starts by investing the deposit and buying costs they did not spend. Each month, the side with lower modelled housing costs invests the difference. The comparison then places buyer equity after selling costs beside both investment balances.

buyer position = property value − mortgage − selling costs + buyer investment

renter position = unspent upfront cash + monthly differences + returns

difference = buyer position − renter position

Returns and growth compound monthly from annual scenario inputs. All figures are nominal, so inflation is not removed.

Worked example

With the example inputs, the modelled monthly mortgage payment is £1,417.37. After ten years, the buyer scenario position is £174,419.21 and the renter scenario position is £131,324.66. The difference is £43,094.54; this is an assumption-driven comparison, not a recommendation.

Generated by buy-vs-rent@1.0.0.

What this scenario does not tell you

  • House prices, rents, maintenance and investment returns can differ materially from the entries.
  • Tax treatment, investment fees and inflation are not modelled unless included in user costs.
  • Liquidity, tenure security, moving flexibility and personal preferences are not financial line items.
  • A mortgage figure is not an eligibility decision or regulated recommendation.
  • Past market performance would not guarantee these scenario returns.

Sources and change log

This is an evergreen scenario model with no market-rate feed. Mortgage wording follows the informational boundary described in FCA MCOB 5.4; every price, rent, growth and return assumption comes from the user.

20 August 2026: initial balanced cash-difference model, annual comparison and nine-case sensitivity table added.

Questions people ask

Does a higher result mean I should choose that option?

No. It means one set of entered assumptions produced a higher modelled nominal position. Change the assumptions and consider non-financial needs.

Why does the renter invest the deposit?

It keeps the starting cash treatment comparable: cash not spent on the purchase remains available in the renting scenario.

Are property tax and legal fees included?

Include them in buying costs. The separate buying-cost calculator can help assemble that number.