Updated 5 October 2026: Compare renting with buying over a chosen time period using mortgage repayments, rent changes, house-price assumptions, buying/selling costs and the opportunity cost of the deposit. This version uses England/Northern Ireland residential SDLT rules; Scotland and Wales use different property transaction taxes.
🏠 Rent vs Buy Calculator UK
Compare two simplified financial paths using the same starting cash.
Tax rules checked: 5 October 2026 • Scenario assumptions are editable
How this rent vs buy calculator works
The calculator models a repayment mortgage month by month and compares the buyer’s eventual net home equity with a renter who starts with equivalent cash that the buyer uses for the deposit, SDLT and buying fees. It also models the difference between monthly housing costs so the comparison does not simply treat the deposit as free equity.
Why rent is not simply “dead money”
Rent is a payment for housing rather than an asset purchase, but calling every pound of rent “dead money” makes a rent-versus-buy calculation misleading. Mortgage interest, maintenance, buying fees, property taxes and selling costs also do not become home equity. A fair comparison needs to separate mortgage principal from these ownership costs.
Stamp Duty Land Tax in England and Northern Ireland
For a standard residential purchase in 2026/27, SDLT is 0% up to £125,000, 2% on the portion from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million and 12% above £1.5 million. Eligible first-time buyers pay no SDLT on the first £300,000 and 5% on the portion from £300,001 to £500,000; if the property costs more than £500,000, the first-time buyer relief does not apply.
Why house-price growth is an assumption
No calculator can know what a particular property will be worth in five or ten years. The default house-price change is therefore only a scenario input. Try 0%, a negative figure and a positive figure to see how dependent the outcome is on future property prices.
Why the renter gets an investment/savings return assumption
A buyer ties up money in the deposit and transaction costs. A renter could potentially retain and save or invest that cash instead. Ignoring this opportunity cost mechanically favours buying, so this calculator includes an editable renter savings-return assumption. Actual returns are not guaranteed and tax may apply outside tax-free wrappers.
What other home-buying costs should I consider?
Real purchases can involve conveyancing, surveys, mortgage fees, removals, buildings insurance, repairs, renovation, service charges and leasehold costs. Selling can involve estate-agent and legal costs. The calculator provides simplified buying-fee, maintenance and selling-cost assumptions so you can test scenarios rather than pretending there is one universal cost.
Does this work in Scotland or Wales?
The mortgage and scenario mathematics can still illustrate the comparison, but the built-in property-tax calculation should not be used there. Scotland uses Land and Buildings Transaction Tax and Wales uses Land Transaction Tax rather than SDLT.
Related MoneySavvyUK calculators
Stamp Duty Calculator — estimate SDLT when buying a home in England or Northern Ireland.
Important information
This is an educational scenario tool, not mortgage, investment, tax or financial advice. It cannot capture every household’s financing, tenancy, property or investment circumstances. Use the editable assumptions to explore possibilities and confirm actual mortgage, tax and transaction costs before making a housing decision.