Rent vs Buy Calculator UK 2026

Use GlobalCalqulate’s free UK Rent vs Buy Calculator (2026) to compare the true cost of renting vs buying a home. Estimate monthly mortgage costs, rent increases, house price growth, stamp duty (SDLT/LBTT/LTT), deposit, maintenance, and opportunity cost of investing your deposit. See the break-even point (years) where buying becomes cheaper than renting for England, Scotland, Wales and Northern Ireland scenarios.

Last revised 13 September 2026

By Team GlobalCalqulate · About our editorial standards

Buying a Home

Home price

Deposit (%)

Mortgage interest rate (%)

Mortgage term (years)

Stamp duty & fees

Annual maintenance (%)

How this estimate was calculated

"Net cost of buying" is cash spent on the deposit, stamp duty, purchase fees, mortgage payments, maintenance and ownership costs, minus the home equity built up (home value minus remaining mortgage balance) by the end of the period. It is not the raw cash outlay, because a deposit converts into equity rather than being lost.
This does not model what the deposit or monthly savings from renting could otherwise earn if invested — it compares housing costs only.

Financial Disclaimer: This comparison projects one scenario from assumptions you choose, and is not advice or a prediction. House prices and rents can fall as well as rise, and mortgage rates change. Speak to a qualified mortgage adviser before making a decision of this size. Full disclaimer.

Sources & methodology

Formula:: Total cost of renting over the period
Reference:: GOV.UK / HM Revenue & Customs

Calculation type: Planning estimate. Figures are taken from GOV.UK / HM Revenue & Customs — see sources below.

Your entries stay on this device. This calculator runs entirely in your browser — the figures you type are not sent to us or to anyone else. The page itself uses cookies for analytics and advertising, described in the privacy policy.

Formula & methodology

Formula used

Total cost of renting over the period

Rent cost = Σ (monthly rent, grown each year by rent inflation) + lost interest on the deposit

Rent is a pure cost, but the money not tied up in a house deposit can earn a return, and that return is part of the comparison.

Total cost of buying over the period

Buy cost = mortgage interest + Stamp Duty + purchase and selling costs + maintenance + insurance − equity built

Only the interest portion of a mortgage payment is a cost. Capital repayment converts cash into equity, so it is not lost money.

Equity at the end

Equity = projected property value − outstanding mortgage

What you would walk away with after selling and repaying the loan, before selling costs.

Break-even

The year at which cumulative buying cost first falls below cumulative renting cost

Buying carries large upfront costs, so it usually takes several years before it wins.

Variable definitions

Symbol	Meaning	Unit
Rent	Monthly rent. Current rent, grown by an assumed annual increase.	£/month
Price	Property price. Purchase price of the property being considered.	£
g	Assumed house price growth. An assumption you supply. It is the single most influential input in the whole comparison.	% per year
r	Mortgage interest rate. The rate charged on the outstanding balance.	% per year

Step-by-step calculation

1. Total the cost of renting
Accumulate rent over the period, increasing it each year, and add the return the deposit could have earned elsewhere.
2. Total the true cost of owning
Count mortgage interest, Stamp Duty, legal and survey fees, maintenance and insurance — but not capital repayments, which become equity.
3. Project the property value and equity
Grow the price at the assumed rate and subtract the remaining mortgage balance.
4. Compare and find the break-even year
Identify when ownership stops being the more expensive option, given every assumption entered.

Limitations

The result is driven by assumed house price growth and rent inflation. Neither is knowable, and small changes to either can reverse the conclusion entirely — treat the output as a scenario, not an answer.
House prices can fall. Negative equity is a real outcome that a positive growth assumption hides completely.
Assumes you remain for the whole period. Selling within a few years rarely recovers Stamp Duty and transaction costs.
Maintenance is a genuine and lumpy cost of ownership — roofs, boilers and damp do not arrive on an annual schedule.
Mortgage rates are assumed constant. In practice UK fixed periods end and the rate is renegotiated, often at a very different level.
Stamp Duty varies by nation, by property value and by buyer status; first-time buyer relief and the additional-property surcharge materially change the sums.
Non-financial factors — security of tenure, flexibility to move, freedom to alter the property — are not modelled and often matter more than the arithmetic.

This page is educational. It projects a future value from assumptions you choose, and a projection is not a forecast: real returns vary year to year, and the rules, limits and rates used here can change before the period modelled ends. Treat the output as one scenario among many, not a prediction of what you will have.

Sources & references

Tax authorityStamp Duty Land Tax: residential property rates — GOV.UK / HM Revenue & Customs
Where the Stamp Duty figure this calculator adds to the up-front cost of buying comes from — it is entered rather than assumed, because the rate depends on price, residency and whether you already own a home.

Help & FAQs

Frequently Asked Questions

Clear answers to common questions to help you use this calculator confidently.

Does the calculator use UK housing assumptions?

Tap to view the answer

The calculator follows commonly used principles applicable in the UK. It does not incorporate every local tax or incentive. The estimates are meant for planning rather than exact projections.

Are maintenance, taxes, and insurance included?

Tap to view the answer

Some versions include estimated maintenance, council tax, and insurance. If not entered, the comparison may be simplified. Actual ownership costs may vary.

What happens if I change the property price?

Tap to view the answer

Increasing the property price generally raises the estimated cost of buying. You can adjust this value to see how results change. The calculator updates accordingly.

How does changing the mortgage rate affect results?

Tap to view the answer

Higher mortgage rates typically increase the estimated cost of buying. Lower rates may improve the buy comparison. You can modify the rate to explore scenarios.

What if my rent increases each year?

Tap to view the answer

You can include an annual rent growth assumption. Higher rent growth may make buying appear more favourable over time. Results are indicative.

Need more help? Contact support or email globalcalqulate@gmail.com

We typically reply within 24–48 hours.

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How to Use This Calculator

Enter home purchase details

Add home price, deposit percentage, mortgage rate, and term.

Enter your rent

Provide current monthly rent and expected annual increase.

Set growth assumptions

Include house price growth and investment return assumptions.

Compare results

View total costs and see whether renting or buying is cheaper.

Understanding Your Results

Break-even year
The year when buying becomes cheaper than renting.
Net cost of buying (after equity)
Cash spent on the deposit, stamp duty, purchase fees, mortgage payments, maintenance and ownership costs, minus the home equity built up by the end of the period. A deposit converts into equity rather than being lost, which is why this is not the same as raw cash spent.
Total cost of renting
Total rent paid over your chosen time period.

Understanding Rent vs Buy

Why break-even matters

If you move before break-even, renting is often cheaper.

Interest vs equity

Mortgage interest is a cost. Principal repayments and house price growth build equity, which is why the "net cost of buying" figure subtracts your equity from the cash you've spent rather than treating the deposit as pure spend.

What this calculator does not model

It compares housing costs only — it does not account for what a deposit or the difference between rent and mortgage payments could earn if invested elsewhere instead of going into a home.

Formula & methodology

Formula used

Total cost of renting over the period

Rent cost = Σ (monthly rent, grown each year by rent inflation) + lost interest on the deposit

Rent is a pure cost, but the money not tied up in a house deposit can earn a return, and that return is part of the comparison.

Total cost of buying over the period

Buy cost = mortgage interest + Stamp Duty + purchase and selling costs + maintenance + insurance − equity built

Only the interest portion of a mortgage payment is a cost. Capital repayment converts cash into equity, so it is not lost money.

Equity at the end

Equity = projected property value − outstanding mortgage

What you would walk away with after selling and repaying the loan, before selling costs.

Break-even

The year at which cumulative buying cost first falls below cumulative renting cost

Buying carries large upfront costs, so it usually takes several years before it wins.

Variable definitions

Symbol	Meaning	Unit
Rent	Monthly rent. Current rent, grown by an assumed annual increase.	£/month
Price	Property price. Purchase price of the property being considered.	£
g	Assumed house price growth. An assumption you supply. It is the single most influential input in the whole comparison.	% per year
r	Mortgage interest rate. The rate charged on the outstanding balance.	% per year

Step-by-step calculation

1. Total the cost of renting
Accumulate rent over the period, increasing it each year, and add the return the deposit could have earned elsewhere.
2. Total the true cost of owning
Count mortgage interest, Stamp Duty, legal and survey fees, maintenance and insurance — but not capital repayments, which become equity.
3. Project the property value and equity
Grow the price at the assumed rate and subtract the remaining mortgage balance.
4. Compare and find the break-even year
Identify when ownership stops being the more expensive option, given every assumption entered.

Limitations

The result is driven by assumed house price growth and rent inflation. Neither is knowable, and small changes to either can reverse the conclusion entirely — treat the output as a scenario, not an answer.
House prices can fall. Negative equity is a real outcome that a positive growth assumption hides completely.
Assumes you remain for the whole period. Selling within a few years rarely recovers Stamp Duty and transaction costs.
Maintenance is a genuine and lumpy cost of ownership — roofs, boilers and damp do not arrive on an annual schedule.
Mortgage rates are assumed constant. In practice UK fixed periods end and the rate is renegotiated, often at a very different level.
Stamp Duty varies by nation, by property value and by buyer status; first-time buyer relief and the additional-property surcharge materially change the sums.
Non-financial factors — security of tenure, flexibility to move, freedom to alter the property — are not modelled and often matter more than the arithmetic.

Sources & references

Tax authorityStamp Duty Land Tax: residential property rates — GOV.UK / HM Revenue & Customs

Where the Stamp Duty figure this calculator adds to the up-front cost of buying comes from — it is entered rather than assumed, because the rate depends on price, residency and whether you already own a home.

Calculator inputs

Buying a Home

Renting2 options

Growth & Assumptions2 options

Purchase Costs3 options

Ownership Costs2 options

Your results

Sources & methodology

Formula & methodology

Formula used

Total cost of renting over the period

Total cost of buying over the period

Equity at the end

Break-even

Variable definitions

Step-by-step calculation

Limitations

Sources & references

Does the calculator use UK housing assumptions?

Are maintenance, taxes, and insurance included?

What happens if I change the property price?

How does changing the mortgage rate affect results?

What if my rent increases each year?

Related calculators

More United Kingdom calculators

Calculator inputs

Buying a Home

Renting2 options

Growth & Assumptions2 options

Purchase Costs3 options

Ownership Costs2 options

Your results

Sources & methodology

How to Use This Calculator

Example: renting at £1,200 vs buying a £300,000 home for 10 years

Understanding Your Results

Key Tips

Understanding Rent vs Buy

Why break-even matters

Interest vs equity

What this calculator does not model

Formula & methodology

Formula used

Total cost of renting over the period

Total cost of buying over the period

Equity at the end

Break-even

Variable definitions

Step-by-step calculation

Limitations

Sources & references

How to Use This Calculator

Example: renting at £1,200 vs buying a £300,000 home for 10 years

Understanding Your Results

Key Tips

Understanding Rent vs Buy

Why break-even matters

Interest vs equity

What this calculator does not model