Buy or Rent Calculator UK – Compare Mortgage vs Rent

Your home and mortgage

Home purchase price

Deposit

Mortgage interest rate

Enter the total rate offered by the lender, not only the Bank Rate.

Mortgage term

years

Current monthly rent

£/month

How many years should be compared?

years

Default values are illustrative. The rate is the Bank of England average for new advances secured on dwellings; it is not a personal mortgage quote. Change every assumption to fit your situation.

View Bank of England mortgage-rate data →

Buying versus renting

Buyer’s wealth—

Home equity plus invested monthly differences

Renter’s wealth—

Invested starting capital and monthly differences

Mortgage payment—per month

Cash needed upfront—deposit and buying costs

Estimated home value—

Mortgage balance—

Mortgage interest paid—over the comparison period

Rent paid—over the comparison period

Result in today’s money

Buy —

Rent —

Crossover point—

Try different assumptions

These are not forecasts – each button simply changes the detailed assumptions.

How could wealth change?

Buying includes home equity; renting includes the invested deposit, buying costs and monthly differences.

BuyingRenting

How is it compared? Each month the calculator updates the mortgage balance, home value, rent and owner maintenance. The cheaper option invests the monthly difference. Buyer wealth equals home value minus the mortgage plus investments; renter wealth equals invested starting capital plus monthly savings.

How to use the buy or rent calculator

Enter six key values, then open the detailed assumptions if you want to test a more specific scenario

Enter the property price

Use the realistic price of a comparable home and your available deposit.

Add mortgage terms

Use the total mortgage rate offered by a lender and the intended term.

Enter comparable rent

Use the rent of a similar property in the same area, excluding bills.

Change the time horizon

Compare 5, 10, 20 or 30 years: short and long horizons can give different answers.

When can buying beat renting in the UK?

Monthly mortgage payment versus rent is only the starting point

Buying can build equity

Part of each mortgage payment reduces the debt, while the home remains an asset. Buying tends to become more attractive when you stay longer and transaction costs are spread over more years.

Renting preserves flexibility

Renting needs less cash upfront and can make moving easier. It performs best financially when the unused deposit and any monthly saving are actually invested.

Compare like with like

Mortgage principal is not a pure cost. Interest, maintenance and buying costs are costs; principal repayment increases your equity. The calculator separates these effects.

What is included in the buy versus rent comparison?

Clear assumptions make the result easier to interpret

Factor	Buying	Renting
Starting capital	Deposit and buying costs are used for the home	The same amount is invested
Monthly housing cost	Mortgage payment and owner maintenance	Monthly rent
Monthly difference	The cheaper option invests the difference so both scenarios use the same housing budget
Wealth at the end	Home value less mortgage balance, plus investments	Investment portfolio
Inflation	Both results are also shown in today’s money

Not included: tax on investment gains, future sale costs, remortgaging fees, individual lender fees or mortgage protection products. Household bills are excluded because they commonly apply to both options. This is a scenario, not financial advice.

UK mortgage rates, deposits and buying costs in 2026

The Bank of England reported an average effective mortgage rate of 4.61% for new advances in August 2026. This is a market average, not an APRC or an individual offer; your rate depends on loan-to-value, affordability, product and credit profile.

Most UK mortgages require at least a 5% deposit, while 10% or more can provide a wider choice. Stamp Duty Land Tax and other purchase costs depend on the property value, buyer status and UK nation, so the buying-cost percentage is editable.

Buy or rent calculator: frequently asked questions

Answers about mortgages, deposits, equity, inflation and comparing rent with buying

Is buying always better than renting?

No. The answer depends on the price-to-rent relationship, mortgage rate, how long you stay, buying costs, maintenance and whether a renter invests the cash they do not put into a home.

How is the monthly mortgage payment calculated?

The calculator uses a repayment mortgage with an annuity payment based on the loan, annual interest rate and term. A variable rate can change in practice.

What deposit should I enter?

Enter the cash deposit you expect to use. Many UK mortgages need at least 5%, but a larger deposit can reduce loan-to-value and may improve available deals.

Does the calculator count the house as an asset?

Yes. Buyer wealth includes the estimated home value less the remaining mortgage, plus any invested monthly differences.

Why is the renter’s deposit invested?

It keeps the comparison fair: if the home is not purchased, the deposit and buying costs remain available and can be invested.

Which mortgage interest rate should I use?

Use the total rate in a lender illustration. The Bank of England value loaded here is a market benchmark only, not your personal quote or APRC.

Does the calculator include Stamp Duty?

Use the editable buying-cost percentage to allow for SDLT, legal fees, surveys and other costs. Check the official calculator because liability varies by circumstances.

Are my figures stored?

No. The calculation runs in your browser and the values you enter are not submitted to the server.