Should you rent or buy? Compare the total cost over the years — mortgage, deposit, Stamp Duty and upkeep against rent plus the return on the money you'd invest instead of a deposit. See the year buying becomes cheaper.
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Stamp Duty on this price: £0
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Market rates are indicative — adjust them. Includes the opportunity cost of your deposit (the investment return).
=Break-even year
2 yr
Net cost of buying (at end)£75,463
Net cost of renting (at end)£172,469
Monthly mortgage£1,578
Deposit£30,000
Purchase costs£2,000
Verdictbuying wins
Buying becomes cheaper after 2 years
Break-even year: 2 yr · Buying becomes cheaper after 2 years
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Last updated: 12 July 2026. The comparison includes the opportunity cost of your deposit (what it would earn if you rented and invested it) and computes Stamp Duty (SDLT) from the 2025/26 England & NI bands, with first-time-buyer relief and the +5% additional-property surcharge. Market rates (mortgage, growth) are indicative — adjust them. Scotland (LBTT) and Wales (LTT) differ. Source: GOV.UK — SDLT.
⚖︎ Results are for informational purposes and do not constitute tax advice. For specific situations, consult a licensed accountant or the relevant tax authority.
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iHow it is calculated
Year by year we compute the net cost of buying = deposit + purchase costs + mortgage paid + ownership costs − equity built (home value minus the loan balance and selling costs). And the net cost of renting = rent paid − the growth on your deposit if you'd invested it instead. The break-even year is the first year buying becomes cheaper than renting. The deposit's opportunity cost is the decisive factor, so it's built in.
A £300,000 home, 10% deposit, 5% mortgage over 25 years, first-time buyer (£0 Stamp Duty), vs £1,400/month rent with 3% price growth and a 5% investment return: renting is cheaper for the first few years (the deposit and fees are big upfront costs), then buying pulls ahead as you build equity. The exact break-even depends on your assumptions.
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?Frequently asked questions
Should I rent or buy a house?
It depends on how long you'll stay and your market assumptions. Renting is usually cheaper short-term (a deposit and buying costs are large upfront); buying wins over the long run as you build equity. The calculator shows the break-even year for your figures.
What is the break-even year?
It's the first year the cumulative net cost of buying drops below the net cost of renting. Stay beyond it and buying is cheaper overall; move before it and renting was the better deal.
Why does the deposit's opportunity cost matter?
If you rent, the deposit and fees you didn't spend can be invested and earn a return. Ignoring that gain would unfairly favour buying, so we include it as the investment return on the money you'd otherwise put down.
How much is Stamp Duty when buying?
For England & NI (2025/26): 0% to £125,000, 2% to £250,000, 5% to £925,000, 10% to £1.5m, 12% above. First-time buyers pay 0% to £300,000 (then 5% to £500,000, no relief above). Second homes add a 5% surcharge. The tool computes it from the price and your toggles.
Does this cover Scotland and Wales?
The Stamp Duty calculation uses the England & Northern Ireland bands. Scotland uses LBTT and Wales uses LTT, which have different thresholds and reliefs — enter your buying costs manually if you're there.
What mortgage rate and house-price growth should I use?
In mid-2026 typical fixed mortgage rates are around 4.8–5.2%, and forecasts for house-price growth cluster around 2–3% a year (some higher, some flat). These are assumptions — try a few scenarios.
Does it include maintenance and Council Tax?
Yes, through an annual ownership cost as a percentage of the value (maintenance + Council Tax + insurance) plus any monthly service charge. Adjust the percentage and the monthly figure to your property.
Does rent rise over time?
Yes, we model an annual rent-growth rate (default ~3%). Rents tend to rise with inflation or the market, which over the long term favours buying with a fixed-rate mortgage.
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