PLAIN FIGURES/03 / RENT VS BUY

Rent vs Buy Calculator

Compare the true financial outcome of renting versus buying over time, accounting for equity, investment returns, and opportunity cost.

Buying

Home Price

Down Payment15%

Mortgage Rate

Mortgage Term

years

Annual Home Appreciation

Renting

Monthly Rent

Annual Rent Increase

Investment Return (on saved deposit)

Comparison Period

Compare over

years

Verdict after 10 years

Better financial outcome

Renting

Net Worth Difference

£117,211

advantage to renting

Break-even

Not reached

within 10 years

Buy: Home Equity Built

£254,212

Buy: Total Cost Paid

£338,432

Year-by-Year Net Position

Buy net position

Rent net position

Buy

Rent

-£20,953

£60,723

-£30,788

£58,310

-£39,981

£55,752

-£48,510

£53,040

-£56,347

£50,166

-£63,468

£47,119

-£69,845

£43,889

-£75,449

£40,466

-£80,251

£36,837

Y10

-£84,220

£32,990

* Net position = equity/investments minus cumulative costs. Buying includes 3% buying costs, 1.2% property tax, 1% maintenance p.a.