Rent vs Buy Calculator UK
The UK uses stamp duty, not annual property tax, and lower mortgage rates. Compare.
100% runs in your browser — no upload, no trackingThese are estimates using standard formulas (amortization and the common 28%/36% guideline). They are not financial or real-estate advice — confirm any number with a lender or broker.
How the monthly payment is calculated
The calculator totals the cash you would spend buying (down payment, mortgage, tax, insurance, maintenance) and subtracts the equity you build, then compares it to total rent minus what your down payment could have earned invested. The break-even is the year buying pulls ahead.
United Kingdom housing facts
The UK has no annual property tax like the US; instead buyers pay Stamp Duty Land Tax once on purchase. Mortgage rates are set by the Bank of England base rate and often run lower than US rates. Whether rent or buy wins depends heavily on local prices and how long you stay.
FAQ
How is the monthly mortgage payment calculated?
It is an amortizing loan: payment = loan × r(1+r)^n / ((1+r)^n − 1), where r is the monthly rate and n the number of months. Add tax, insurance and maintenance for the full monthly cost.
What does the rent-vs-buy break-even mean?
It is the number of years you would need to stay before buying costs less than renting, on the assumptions you entered. Stay longer and buying usually wins; move sooner and renting usually wins.
Is my data uploaded?
No. All calculations run in your browser. The numbers you enter never leave your device.
Is this financial advice?
No. These are planning estimates using standard formulas. Confirm any mortgage or housing decision with a lender, broker, or tax professional.