Last Updated on June 18, 2026

Should I rent or buy a home?

Our rent versus buy calculator helps you work out whether buying or renting a home is the better option for your current circumstances. Owning your own home is deeply entrenched in the UK psyche and an aspiration for many. Yet, there are times when renting and “paying off someone else’s mortgage” can be the better choice. Whether buying or renting is more cost-effective depends on the local housing market, interest rates, how long you plan to stay, and what you would do with your money if you don’t buy a house.

The hidden costs of both options

For most people, housing is their biggest monthly expense, yet the true cost of each option isn’t always that clear. Buying is more than just mortgage costs, while renting isn’t just the sunk monthly rent. When you buy a home, you pay stamp duty, legal and survey fees, and ongoing maintenance costs. When you rent, you are not building home equity; your rental deposit earns nothing while it is held in a tenancy deposit scheme, and rents tend to increase over time. If you have a house deposit and you opt to rent, investing the money can generate capital growth and income.

Renting versus buying calculator

Our rent vs buy calculator accounts for these factors and estimates the figures for both options. It compares the long-term cost of buying (mortgage interest, upfront costs, maintenance, and property growth) against renting (monthly rent, annual increases, and the potential returns from investing the equivalent of a house deposit). You can also model the returns from investing any monthly spare cash in both scenarios.

The results tab shows the total net cost of each option over a chosen period, and the breakdown tab provides an annual view of the mortgage capital and interest repayments. To work out the stamp duty amount, use our stamp duty calculator or our first-time buyer stamp duty calculator if this is your first home. To calculate the rental deposit, use the calculator at the bottom of this page.

How to use the rent vs buy calculator

Enter the property details, your deposit, mortgage rate and term, estimated house price growth, and your buying costs. Then include the rental figures: monthly rent, expected annual rent increases, rental deposit and any spare money you can invest. Set a comparison period, and the calculator will show you the net cost of both options over time, including an annual breakdown of your mortgage capital repayments. For investment returns, the average stock market returns are around 7% to 8%, but this is never guaranteed or linear.

This calculator is for illustrative purposes only and does not constitute financial advice. All figures are estimates based on the inputs provided and assumed rates of return. Property values and investment returns can go down as well as up. You should seek independent financial advice before making any property or investment decisions.

Assumptions of the calculator

• Maintenance costs are not adjusted for inflation.
• It is assumed that cash and investments are held in tax-free ISA wrappers. The calculation does not include any potential tax liability on capital gains or savings interest.
• Returns on cash invested or saved are calculated on a compounding basis.

Rental deposit calculator