Use this when the question is not just “can I buy?” but “what happens if I buy and then move in a few years?” It compares renting with buying over a chosen horizon using mortgage interest, SDLT, maintenance, sale costs and the opportunity cost of tying up your deposit.
Scope: this page uses England and Northern Ireland SDLT for the buying side. The nation note above this calculator explains what to use instead for Scotland or Wales.
Renting cost over the horizon£0Buying unrecovered cost over the horizon£0Estimated home equity after sale£0Mortgage payment per month£0
SDLT used in the estimate£0Opportunity cost on the deposit£0Estimated break-even yearNo clear break-even yet
What this means
Short holding periods punish buyers because the upfront tax, fees and sale costs have less time to be offset by equity build-up and house-price growth.
The right answer depends on geography, time horizon, and personal flexibility — not just monthly cost. Here's the framework for a typical UK city scenario.
After 5 years: principal paid ~£20,000, interest ~£46,000, fees £3,500
Property value at 3% annual growth: ~£255,000
Equity at year 5: £255,000 − remaining mortgage ~£178,000 = £77,000
5-year cost of renting: £950 × 60 = £57,000 (no equity at end)
Net position buying: −£91,500 paid + £77,000 equity − £22,000 (original cash that's now equity but illiquid) = roughly break-even by year 5
Result: Emma breaks even around year 5 at Manchester prices. The "buying always wins" myth is partly true at modest UK regional prices but the break-even stretches to 7-10 years in London and HCOL areas where house prices are high relative to local rents.
David — London professional considering staying flexible
Renter's investments at 5% return on £67,500 + monthly £420 savings: ~£115,000
Result: David is genuinely close to break-even at London prices and 5-year horizon. If he'll move within 3 years, renting + investing the deposit usually wins. If he'll stay 7+ years, buying tends to win. The decision is more about geographic flexibility than money.
Figures use 2026/27 UK tax-year rates and thresholds. Always verify against your specific payslip or tax statement before acting.
Every page is reviewed against the editorial standards, written from primary sources, sourced openly, and corrected publicly. No affiliate revenue. No sponsored content. No paid placements.
This page compares unrecovered cost rather than just total cash out. On the buying side it treats mortgage interest, SDLT, fees, maintenance, sale costs and the opportunity cost of the deposit as the main “gone for good” costs, while showing the remaining home equity separately.
This is most useful for shorter to medium holding periods when the upfront buying costs matter a lot.
It is intentionally a first-pass comparison, not a full investment model.
If the choice is close, check the mortgage, SDLT and first-time-buyer pages alongside this one.
This calculator uses England and Northern Ireland SDLT as a first pass. Mortgage rates, rent growth, house-price growth and investment returns are all user inputs, not forecasts.