Rent vs Buy Calculator

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

Buy Inputs

£
%

£70,000

%
years
%
£
£
%
%

Rent Inputs

£
£
%

Comparison Period

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

Y1
Y2
Y3
Y4
Y5
Y6
Y7
Y8
Y9
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.