How does the rent vs buy comparison actually work?

Buying costs include the deposit, Stamp Duty, legal and survey fees, mortgage interest, and maintenance, offset by equity built and house-price growth when you sell (minus selling fees). Renting costs are the rent over the period, while your deposit and any monthly savings are assumed invested at your chosen return. The tool compares the net wealth position of each path at the end of your horizon.

Does it include Stamp Duty Land Tax?

Yes. The tool applies a Stamp Duty estimate to the purchase as an upfront buying cost. Rates and thresholds differ across England, Scotland (LBTT), and Wales (LTT), and for first-time buyers and additional properties — so treat the included figure as an editable estimate and override it with your exact liability if you know it.

Why does buying sometimes lose even when 'rent is dead money'?

Because buying has large one-off costs — Stamp Duty, legal fees, and selling fees — plus mortgage interest, which on early payments is mostly interest rather than equity. Over short horizons those costs can exceed the equity and price growth you gain, so renting and investing the deposit can come out ahead. The break-even point is usually several years in.

What house-price growth should I assume?

UK house prices have historically grown at roughly 3–5% per year over the long run, but with long flat or falling periods. Use a cautious figure and try a low scenario too — your result is sensitive to it. The same applies to the investment return on your deposit if you rent instead.

Is this tax or financial advice?

No. It is an educational model that runs entirely in your browser. It simplifies tax, ignores remortgaging and product fees, and cannot know your circumstances. Use it to understand the trade-offs, then consult a qualified mortgage adviser or accountant before deciding.

United Kingdom Rent vs Buy Calculator

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The UK Rent vs Buy Calculator answers one of the most expensive questions a household faces: over the years you actually plan to stay, are you financially better off buying a home in the United Kingdom or renting and investing your deposit? “Rent is dead money” is a slogan, not a calculation — buying carries Stamp Duty, legal fees, mortgage interest, maintenance, and selling costs that a fair comparison must include. This tool models both paths year by year and reports the net wealth difference.

How it works

The calculator runs two scenarios over your time horizon.

Buying starts with your deposit plus all upfront costs (Stamp Duty, legal, survey). Each year it adds mortgage interest paid and maintenance, and tracks equity built through repayments. At the end it values the home with compounded house-price growth, subtracts the outstanding mortgage and selling fees, and nets that against everything you paid in.

Renting pays rent each year (growing with rent inflation) while your deposit — and the cash-flow difference versus owning — is invested at your chosen return and compounded. The end position is your invested pot minus total rent paid.

The headline is the difference between the two net positions:

buy_net  = sale_value − mortgage_left − selling_fees − total_buy_outlay
rent_net = invested_pot − total_rent_paid

Whichever is higher wins, and the gap tells you by how much.

Tips

Run a pessimistic house-price growth (0–2%) alongside your base case — buying is far more sensitive to it than renting.
The longer your horizon, the more buying tends to win, because the big upfront costs spread over more years.
Stamp Duty, LBTT (Scotland) and LTT (Wales) differ; override the estimate with your exact figure if you have it. Everything is computed locally in your browser.