Property Decision
Rent vs Buy
Calculator UK
Avg UK Price
£268k
Avg UK Rent
£1,300/m
Should you rent or buy in the UK? Enter a property price and your current rent to see the true cost of each option over time. The calculator compares mortgage payments and equity growth against rent costs and what you could earn by investing your deposit instead.
Your Scenario
Buying wins after 5 years
You're £0 better off buying
Buying breaks even in year 3
Buying
Renting
How the rent vs buy calculator works
The calculator models both scenarios year by year. For buying, it tracks your total spending (deposit + mortgage payments + maintenance) against the equity you build through mortgage repayment and house price growth. For renting, it tracks your total rent paid against what you would earn by investing your deposit in a stocks and shares ISA at 4% annual growth.
The net position for buying is your equity minus total spent. The net position for renting is your investment value minus total rent paid. Whichever gives you a higher net position after 5 years is the winner. The breakeven year shows when buying overtakes renting — before that point, renting is financially better.
You can adjust house price growth, rent increases and maintenance costs to model different scenarios. In areas with strong house price growth (4-5%), buying wins faster. In areas with flat prices or high maintenance properties, renting can win for much longer. For a detailed mortgage breakdown, use our mortgage calculator.
Frequently asked questions
Is it cheaper to rent or buy in the UK in 2025?
It depends on your location, deposit size, mortgage rate and how long you plan to stay. In many UK cities, monthly mortgage payments are now similar to rent. However, buying builds equity through house price growth and mortgage repayment. Over 5+ years, buying is usually cheaper in total cost — but only if property prices grow.
How long do I need to own a property for buying to be worth it?
Typically 3-7 years, depending on your deposit size, mortgage rate and local house price growth. The upfront costs of buying mean renting is cheaper in the first 1-2 years. After that, equity growth usually tips the balance.
What costs does the rent vs buy calculator include?
For buying: deposit, monthly mortgage payments, annual maintenance costs and property value changes. For renting: monthly rent with annual increases, plus the return you'd get from investing the deposit instead. This gives a fair like-for-like comparison.