Rent vs buy calculator

Buying builds equity but costs stamp duty, fees, interest and upkeep; renting leaves that money free to invest. This compares the two fairly: both households spend the same each month, and whichever pays less invests the difference. The lines show each one's net worth over time, at growth rates you choose.

Not a recommendation to rent or to buy. Growth rates are scenarios you choose, not forecasts; homes and investments can fall as well as rise, and past performance is not a guide to the future. CoreFi does not advise on or arrange mortgages.

After 25 years · Buying ahead by

£395,014

Buying £650,308 · Renting and investing £255,294

Buyer: home less mortgage and selling costs
Renter: investments

House prices rise, a year%

A scenario, not a forecast.

Investments return, a year%

After fees. A scenario, not a forecast.

After 25 years, at other house price growth

Renting and investing aheadBuying ahead

0%£126,348
1%£194,130
2%£281,924
3%£395,014
4%£539,982
5%£725,003
6%£960,211

Level at house price growth of −3.2% a year, with rents, returns and costs as set.

Paid up frontDeposit, stamp duty and buying costs. The other side invests the same.: £32,500
Stamp dutyEngland or Northern Ireland, first-time buyer relief where it applies; the rules in force on 26 Sep 2026.: £0
Mortgage payment: £1,501 a month
Owning, all in, first monthMortgage, upkeep, insurance and service charge.: £1,784
Rent, first month: £1,250
Mortgage interest over 25 years: £180,224
Rent over 25 years: £546,889

The home

Home price£

Deposit£

Mortgage rate%

Mortgage term (years)

Where you are buying

First-time buyer

Renting and time

Rent for a similar home, a month£

Rents rise, a year%

Years to compare

Costs of owning

Upkeep, % of value a year%

Buildings insurance, a year£

Service charge and ground rent, a year£

Those costs rise, a year%

Buying costs (legal, survey, fees)£

Selling costs, % of the price%

Growth rates are scenarios you choose, not forecasts. Homes and investments can fall as well as rise, and past performance is not a guide to the future. Not advice or a recommendation. CoreFi does not advise on or arrange mortgages. Reviewed September 2026.

Worked example, illustrative only

Buying a £300,000 home with a £30,000 deposit at 4.5% (stamp duty £0 for a first-time buyer, on today's rules), against renting a similar home for £1,250 a month, with house prices and rents rising 3% a year and investments returning 5%: after 25 years the buyer has £650,308 and the renter £255,294, so buying is ahead by £395,014. The two come out level at house price growth of about −3.2% a year. Illustrative only, not a quote or advice.

How it works

The buyer pays the deposit, stamp duty and buying costs, then the mortgage, upkeep, insurance and any service charge. The renter invests what the buyer paid up front, then pays the rent.
Each month, whichever costs less invests the difference, so both spend exactly the same. Early on that is usually the renter; once rents rise and the mortgage ends, usually the buyer.
Net worth is counted as if everything were sold that year: the home less selling costs and the mortgage, and the investments as they stand. A main home is free of capital gains tax.
Stamp duty uses the rules in force today where you are buying. Growth rates are scenarios you choose, not forecasts; the break-even figure is the house price growth at which the two come out level.

Three numbers decide most of it

House price growth, investment returns, and how the rent compares with the costs of owning. Move each one and watch the lines. The strip under the chart shows who is ahead at other house price growth rates, with everything else as you set it.

Frequently asked questions

Is it cheaper to rent or buy in the UK?

It depends on the numbers, and mostly on three: house price growth, investment returns and how the rent compares with the costs of owning. Over short periods the costs of buying and selling usually favour renting; over long ones, repaying the mortgage and rising rents usually favour buying. Try your own figures.

What does rent and invest the difference mean?

The renter keeps the money a buyer would spend on the deposit and costs, and each month invests whatever renting saves compared with owning. It only works if the difference really is invested. Spent, it builds nothing.

Why are selling costs taken off?

To compare like with like. Investments can be sold quickly at little cost; a home takes agents' and legal fees to turn back into money. Net worth here is what each household would have if it sold that year.

How is stamp duty worked out?

From the land transaction tax rules in force today in England and Northern Ireland (Stamp Duty Land Tax), Scotland (LBTT) or Wales (LTT), with first-time buyer relief where it applies. The rules change at some Budgets, so check the figure for your completion date.

Does it include tax on the investments?

It assumes they are held where the return is not taxed, such as a stocks and shares ISA within its yearly allowance. Outside one, dividends and gains can be taxed, which lowers the renter's line. The house vs shares calculator models that tax.

Is this advice?

No. It illustrates arithmetic at growth rates you choose, which are scenarios, not forecasts. It is not a recommendation to rent or to buy, or to buy any investment. Homes and investments can fall in value as well as rise, and past performance is not a guide to the future.

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This calculator illustrates arithmetic from the figures you enter. It is not advice or a recommendation, and it does not forecast prices, rents or returns. CoreFi does not advise on or arrange mortgages. CoreFi is a trading name of JG Core Ltd (company 16218779). Figures reviewed September 2026.