It compares a rent path with a buy path using an assumed mortgage rate, property growth rate and holding period. That makes it a planning tool for first-time buyers and movers rather than a prediction engine for house prices.
BUYING VS RENTING
Buy vs rent calculator
Estimated homeowner equity
£114,855
- Mortgage payment
- £1,667/mo
- Buyer cash outlay
- £162,050
- Rent paid
- £90,000
- Illustrative buy advantage after cash return
- -£30,832
This is a decision-support model. It still excludes council tax, maintenance, service charges, insurance, SDLT/LTT/LBTT and individual tax effects on savings or rent relief.
Compare the monthly cost of renting with the longer-term cost of buying, so you can see whether the deposit, stamp duty and ownership horizon actually work for you.
It compares a rent path with a buy path using an assumed mortgage rate, property growth rate and holding period. That makes it a planning tool for first-time buyers and movers rather than a prediction engine for house prices.
A buyer with a large deposit can sometimes reach breakeven earlier than a renter if local rents are high and the property is held long enough. But a short hold period, high fees or a weak growth assumption can make renting the safer call.
- Growth is an assumption you can change, not a forecast.
- Different buying costs, mortgage rates and holding periods change the breakeven point quickly.
What to compare next
If the buy path looks expensive, check the mortgage affordability and salary-needed pages to see whether the financing side is the real blocker. If the payment is still manageable, compare the overpayment and rate-rise tools before deciding that buying is the better long-term path.
If your holding period is flexible, also compare the council-tax difference between areas because local tax bills can change the cash-flow picture as much as mortgage costs.
SOURCES & REVIEW
Checked against official guidance
Last reviewed 1 September 2026 · Rule version GB-2026.27.1
Daily/weekly source monitoring. If a source changes, the affected rule set is reviewed before publication.
All source links are kept visible so you can verify the figures used on this page.
MoneyHelper: Buying a home ↗Sources, methodology and update policy →Report an issue or correction →WHY RESULTS DIFFER
Why two users can see different results
Why the result can differ
Different tax codes, payroll periods, Scottish bands, pension methods or lender assumptions can change the outcome.
One-off bonuses, pay frequency, overpayments, allowances and reliefs can move the result away from a simple annual estimate.
Where a rule depends on eligibility or legal status, this page shows an estimate and links to official guidance.
This section is intentionally repeated on key tools so the explanation stays near the result instead of being hidden in a separate policy page.
COMMON QUESTIONS
Frequently asked questions
Does this predict house prices?
No. Growth is an assumption you can change, not a forecast.
Are all buying costs included?
No. Review the exclusions shown with the result before using it for a decision.
Does renting always lose?
No. A short hold period, high fees or weak growth assumptions can make renting the better option.