Weigh up the long-term financial implications of renting against buying a home in the UK to find your personal breakeven point.
1 Years
The point where the net cost of buying becomes cheaper than renting.
| Timeframe | Net Cost of Buying | Total Cost of Renting |
|---|---|---|
| After 5 Years | £20,648.97 | £75,691.13 |
| After 10 Years | £32,051.34 | £161,328.70 |
| After 15 Years | £32,553.10 | £258,219.74 |
| After 25 Years | -£7,568.95 | £491,871.80 |
Net cost of buying is total outlay (deposit, mortgage, fees, maintenance) minus the equity in your home.
Deciding whether to rent or buy a home is one of the most significant financial choices you will make. This calculator provides a purely financial comparison, weighing the costs and benefits of each path over the long term. It aims to identify the "breakeven point" – the moment when buying becomes more financially advantageous than continuing to rent.
The cost of buying involves more than just the monthly mortgage payment. There are substantial upfront costs, principally the deposit and Stamp Duty Land Tax (SDLT). Following this, ongoing costs include not only the mortgage but also maintenance, insurance, and potential service charges. However, the crucial benefit of buying is building equity. A portion of your mortgage payment reduces your loan, while the property itself may appreciate in value. Our calculation determines the "net cost" of buying by subtracting your equity (property value minus remaining mortgage) from your total cash outlay.
Renting, in contrast, is simpler. Your primary cost is the monthly rent, which is likely to increase over time. While you build no equity, you gain flexibility and are not responsible for maintenance or repairs. This calculator projects the cumulative cost of renting over time, factoring in an annual rent increase, to provide a direct comparison against the net cost of buying. By understanding these dynamics, you can make a more informed decision based on your financial situation and long-term goals.
Property decisions are among the biggest financial commitments you will make. You may also find our Mortgage Calculator useful for related calculations.
For a broader view of your finances, try the Mortgage Overpayment Calculator or the Compound Interest Savings Calculator. All of our calculators are free to use and updated for the 2026/27 tax year where applicable.