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United Kingdom · GBP

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HomeCalc

Buy or rent

Compare the total cost of buying a home with renting one over the same period.

Figures follow UK law and each nation's rules, with every source cited and dated.

The home and the rent
£
The price you plan to pay.
£
10% of the price
£
What the tenant pays each month.
years
How long you expect to live in or hold the home.
LoanLoan: 25 years at 4.5% a year
years
%
One rate for the whole loan. For a promotional rate that later becomes a floating rate, use the mortgage calculator.

Monthly payment: £1,500.75

Results

Over 10 years, buying costs £62,258.19 less than renting under these assumptions.

United Kingdom · England · GBP

BreakdownCost of owning: £95,417.79 · Renting: £157,675.98

Owning

Interest paid
£106,267.51
Deposit interest forgone on the down payment and buyer costs
£14,432.55
Buyer costs
£5,150.00
Upkeep reserve
£30,000.00
Resale costs
£5,266.06
Less: value gained
-£65,698.33
Cost of owning
£95,417.79

Renting

Rent paid over 10 years (rising 2% a year)
£157,675.98

Principal repaid builds your equity, so it is not counted as a cost.

Growth rates and the deposit rate are assumptions, not forecasts. If you change them above, the sentence changes too.

Note

Every figure on this page is an estimate based on the values you entered and on defaults from UK law, the selected nation's rules and common market practice, each as of the date shown next to it. It is not financial, legal or tax advice. The real amounts are in your solicitor's or conveyancer's completion statement, the tax return they file and your lender's mortgage offer; check them before exchange of contracts. This page does not store what you enter; it stays in the page address only.

Assumptions you can change

  • Home price growth per year

    2%

    Assumption

    The assumed change in the home's price each year. It can be negative. This is an assumption, not a forecast.

  • Rent growth per year

    2%

    Assumption

    The assumed rise in rent each year. This is an assumption, not a forecast.

  • Deposit rate

    3.5%

    Assumption

    What the same cash would earn each year in a deposit. This is an assumption, not a forecast.

  • Upkeep reserve

    1%

    Assumption

    The share of the price set aside each year for repairs and replacements. This is an assumption, not a forecast.

  • Resale costs

    1.44%

    Source: market convention

    Taxes and the brokerage fee when you sell at the end, on the expected sale price.

  • Buyer costs

    £5,150.00

    From the home-buying costs tool

    The taxes and fees the buyer pays on the purchase, from the home-buying costs tool.

    See the cost details

The link carries only the numbers you entered. The site keeps no copy of them.

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