Rent vs Buy Calculator 2026
Compare the true cost of renting vs buying a home in the UK. See your breakeven year, net wealth over time, and which option wins financially.
🏠 Property & Mortgage
📈 Growth & Assumptions
📊 Result
🛒 Buying Costs
🏠 Renting Costs
Year-by-Year Comparison
| Year | Buy Net | Rent Net | Difference |
|---|
How This Calculator Works
This calculator compares the total net wealth of two scenarios over time:
- Buying: You pay a deposit, take a mortgage, cover maintenance/insurance, and build equity as the property (hopefully) appreciates. When you sell, you pay estate agent fees and legal costs.
- Renting: You pay rent monthly, don't build property equity, but you keep your deposit and buying costs invested elsewhere. That investment pot grows at your assumed return rate.
The breakeven year is when the net wealth from buying first exceeds the net wealth from renting. Before that point, renting may be financially superior. After that point, buying typically wins — assuming house prices rise.
Stamp Duty Rates for First-Time Buyers (2026/27)
| Property Price | Stamp Duty Rate |
|---|---|
| Up to £425,000 | 0% |
| £425,001 – £625,000 | 5% on amount above £425k |
| Over £625,000 | Standard rates apply (no FTB relief) |
For non-first-time buyers, standard rates apply: 0% up to £250k, 5% on £250k-£925k, 10% on £925k-£1.5m, 12% above £1.5m. Additional 3% surcharge for second homes and buy-to-let.
When Does Buying Win?
Buying typically becomes the better financial choice when:
- You plan to stay in the property for 5-8+ years
- House prices rise at 2-3%+ annually
- Mortgage rates are below house price growth
- You have a sizeable deposit (reduces interest paid)
- You can comfortably afford maintenance and repairs
Buying wins faster when house prices rise quickly, mortgage rates are low, and your deposit is large. It wins slower (or never) when prices stagnate, rates are high, or you move frequently.
When Does Renting Win?
Renting can be the smarter financial move when:
- You need flexibility to move for work or relationships
- You live in an area where house prices are flat or falling
- You can earn high investment returns (7%+) on your deposit money
- You'd struggle with unexpected repair bills (£5k boiler, £15k roof)
- You plan to move within 3-4 years (selling costs eat your equity)
- You're in a high-yield rental market where rent is cheap vs prices