Rent vs Buy Calculator

Compare the long-term costs of renting vs buying to make an informed decision

Country:

Buy Inputs

Home Price

Down Payment

£70,000

Interest Rate

Loan Term

years

Property Tax Rate

Home Insurance (yearly)

HOA Fees (monthly)

Maintenance (% of home value/year)

Expected Appreciation (yearly)

Rent Inputs

Monthly Rent

Renter's Insurance (yearly)

Expected Rent Increase (yearly)

Comparison Period

How long do you plan to stay?

years

Renting is Better

Over 10 years in this scenario

Net Worth Difference

£191,163

in favor of renting

Break-even Point

Not within period

buying may take longer to pay off

Monthly Buy Cost (Year 1)

£2,536

Mortgage (P&I)£1,770

Property Tax£350

Insurance£125

HOA£0

Maintenance£292

Monthly Rent Cost (Year 1)

£2,017

Rent£2,000

Renter's Insurance£17

Total Buy Cost (10 years)

£385,647

Down Payment£70,000

Total Interest Paid£169,748

Principal Paid£42,627

Final Home Value£470,371

Final Equity£232,998

Total Rent Cost (10 years)

£277,133

Starting Monthly Rent£2,000

Final Monthly Rent (Year 10)£2,626

Equity Built£0

Cumulative Cost Comparison

Y10

Buy (Total Cost)

Rent (Total Cost)

Net Worth Impact

Buy Net Position

-£82,649

Equity minus total costs

Rent Net Position

£108,514

Savings vs. buying costs

Important Note

This calculator provides estimates for educational purposes only. Actual costs will vary based on your specific situation, market conditions, tax implications, and other factors. Consider consulting with a financial advisor and real estate professional before making a home buying decision. The "net worth" calculations are simplified and do not account for investment returns on savings, opportunity costs, or all tax benefits of homeownership.