Rent vs Buy Calculator
A mortgage payment is not comparable to rent.
Work out Rent vs Buy. A mortgage payment is not comparable to rent. Free, with no account and nothing to install.
Cheaper over 10 years
Buying
Buying overtakes renting after about 4 years
Two things make the usual comparison wrong. A mortgage payment is not comparable to rent, because part of it buys equity and part — interest, tax, maintenance, insurance — is pure cost. And renting frees the deposit to be invested, which has to be counted on the renting side or the comparison is rigged. Purchase costs are what make short holds expensive. Stamp duty, legal fees and survey costs are typically 3 to 5% of the price and are gone the moment you buy, which is why the break-even is usually several years out rather than immediate. Everything here depends on assumptions about appreciation, rent inflation and investment returns that nobody knows. Change the appreciation rate by a point and the answer can flip, so the useful output is the break-even year rather than the verdict.
How the Rent vs Buy Calculator works
Renting against buying over a stated horizon, counting equity, purchase costs, running costs and the deposit's return if invested instead. The break-even year is the useful output rather than the verdict.
Also known as: is it cheaper to rent or buy · how long until buying pays off · renting versus buying comparison · break even years on a house
Not financial advice. This calculator is for planning and illustration, not financial advice. Real products carry fees, taxes, and terms it does not model. Confirm figures with your lender or a qualified adviser before committing.
Frequently asked questions
Why can't I just compare rent to the mortgage payment?
Because part of a mortgage payment buys equity and part — interest, tax, maintenance, insurance — is pure cost. Comparing the whole payment to rent is comparing two different things.
Why does the deposit matter to the renting side?
Because a renter can invest it. Ignoring that hands buying a free advantage and rigs the comparison, which is why the invested deposit is counted here.
How long do I need to stay for buying to win?
Usually several years, because purchase costs of 3 to 5% are gone the moment you buy. The break-even year is the number to look at, and it moves a great deal with assumed appreciation.
What costs do people forget?
Maintenance, buildings insurance, service charges and property tax — typically 1 to 2% of the value a year combined. Over a decade that is a substantial share of what looked like a saving.
How reliable is the answer?
It depends entirely on assumptions nobody knows: appreciation, rent inflation and investment returns. Change appreciation by a point and the verdict can flip, which is why the break-even year matters more than the winner.
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