UK Rent vs Buy Calculator
Compare rent with the net cash cost of buying and selling after a chosen period. Include actual purchase-tax estimates, mortgage interest, maintenance and selling costs.
Rule year: 2026/27 · GBP · Sources checked
Buying net cash cost after sale equity
Monthly fixed-rate mortgage model and sale after whole years within the term. Purchase tax is independently entered because UK nations differ; use the appropriate linked calculator. No return on the renter’s retained deposit, reinvestment, moving costs, utilities, benefits, tax on sale, mortgage reset or property-price forecast. This is a cash-cost comparison, not total expected wealth.
For informational purposes only. This estimate is not financial advice, a tax return, a payroll calculation or a lender decision. See the supported circumstances and exclusions below.
How this calculator works
Buying creates equity as principal is repaid, so simply comparing rent with mortgage payments is incomplete. This model adds deposit, purchase charges, mortgage payments and maintenance, then subtracts net sale proceeds after the remaining mortgage and selling costs. Renting is cumulative rent with your chosen annual change. A negative buying net cost reflects the entered sale-price scenario, not a guaranteed investment gain or recommendation.
Formula and rules
Buying net cash cost = deposit + purchase charges + payments + maintenance − (sale price − selling costs − remaining mortgage). Rent cost = sum of annual rents. Compare the difference.
Assumptions and limitations
Monthly fixed-rate mortgage model and sale after whole years within the term. Purchase tax is independently entered because UK nations differ; use the appropriate linked calculator. No return on the renter’s retained deposit, reinvestment, moving costs, utilities, benefits, tax on sale, mortgage reset or property-price forecast. This is a cash-cost comparison, not total expected wealth.
Worked example
At £120,000 price, £20,000 deposit, 0% over 120 months and sale after one year at the same price with no selling fee, £2,000 buying fees and £1,200 maintenance give £3,200 buying net cost. Rent at £1,000/month costs £12,000.
- Buying net cash cost after sale equity
- £3,200.00
- Rent paid over comparison period
- £12,000.00
- Buying cost minus rent
- -£8,800.00
- Net sale proceeds after mortgage balance
- £30,000.00
Official sources and review
Reviewed against the sources below on 2026-10-07. Rates are held in versioned rule modules. Versioned rules, official source review and year-specific calculation tests.
- MoneyHelper: buying a home costs ↗
Purchase fees, taxes and ongoing costs must be established rather than inferred.
Common questions
Does the result prove buying is better?
No. The result follows entered scenarios and excludes return on cash retained by a renter, risk, liquidity and personal housing needs.
Why must I enter purchase tax?
SDLT, LBTT and LTT have different national and buyer rules. Use the appropriate existing tool and carry its established estimate here.
Is mortgage principal counted twice?
Payments are cash outflows, but the terminal equity is deducted. Principal repayment increases that equity, avoiding treating it entirely as an unrecoverable cost.