Rent versus buy calculator
Rent versus buy
Compare estimated cash flows and ending assets from renting and buying.
Compare renting and buying
IllustrativeBuying costs and property assumptions ⌄
Renting and investment assumptions ⌄
Net position: buying minus renting
£6,259
Assumptions and limits⌄
Monthly mortgage and rent payments are modelled in matching periods. Rent changes on each 12-month anniversary, beginning in month 13. Annual owner costs are spread into equal monthly amounts. Property growth compounds annually at each year-end. Calculation timing and ordering are consistent each month: existing renter investments first earn the net monthly return. The investment contribution or withdrawal for each month then applies from the buyer-cost-minus-rent difference. Tax applies only to investment returns, not invested principal. Selling costs apply once to the ending property value.
Property growth, rent increases and investment returns are assumptions, not forecasts. Purchase tax is an entered estimate. This does not include every tax, mortgage fee, legal issue or personal circumstance, and is not financial advice.
Ending assets and costs
What each scenario holds
| Property value / mortgage balance | £300,000 / £212,592 |
|---|---|
| Mortgage principal repaid / interest | £27,408 / £56,773 |
| Ownership costs / sale costs | £9,000 / £6,000 |
| Renter investment balance | £75,149 |
Sensitivity
Assumptions change the comparison
| Scenario | Property growth | Investment return | Buying advantage |
|---|---|---|---|
| Lower property growth | -2.0% | 4.0% | -£21,988 |
| Base assumptions | 0.0% | 4.0% | £6,259 |
| Higher property growth | 2.0% | 4.0% | £36,859 |
| Higher investment return | 0.0% | 6.0% | -£1,865 |