Calculate rent vs buy

Compare the modeled net housing cost of renting with buying over the same number of months.

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ToolRent vs Buy Calculator
Input
Output
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Preview

How it works

Buying adds deposit, amortising mortgage payments, and running costs, then subtracts ending equity after assumed property growth. Renting sums one payment per month and increases it after each complete 12-month block; the visible 1% running-cost and 3% growth defaults are scenarios, not forecasts.

Formula
net buying cost = deposit + mortgage payments + running costs − ending equity
  • Buying equity equals projected property value minus the amortised balance at the comparison date.
  • The model does not credit a renter with investment returns on the unused deposit.

Worked example

300,000 property against 1,200 rent
A 30,000 deposit, 5% mortgage over 25 years, compared over 10 years
Input
											Property price: 300000
Deposit: 30000
Mortgage rate percent: 5
Mortgage term years: 25
Monthly rent: 1200
Comparison years: 10
Output
												Monthly mortgage payment: 1578.39
Property value at end: 403174.91
Remaining balance: 199596.08
Equity at end: 203578.83
Net cost buying: 45828.34
Net cost renting: 165079.86
Difference: -119251.52
Cheaper option: buying
Assumed home price growth percent: 3
Assumed rent growth percent: 3
Assumed running cost percent: 1

When to use this

First-time buyer decisions, fixed-term relocation plans, and housing-budget stress tests compare rent escalation with mortgage payments, maintenance, and resale equity.

Edge cases

  • A deposit equal to or above purchase price is rejected because this comparison requires a mortgage.
  • A comparison longer than the mortgage term is rejected because the remaining-balance formula is scoped to the loan term.
  • A 1.5-year comparison charges exactly 18 rent payments rather than rounding the tenancy up to two full years.