One of the biggest financial decisions you'll make is whether to buy or rent a home. This calculator helps you compare real long-term costs.
The buy vs rent decision depends on many factors: home price appreciation, mortgage interest rates, opportunity cost of down payment, and local rent trends.
A common rule: if you plan to stay less than 3–5 years, renting is often cheaper due to closing costs and transaction fees.
Use this calculator before making any financial commitment that depends on this type of calculation. Running the numbers in advance lets you evaluate options without the pressure of a live negotiation or decision deadline.
A frequent error is using annual rates where monthly rates are required (or vice versa). Simply dividing an annual rate by 12 is only an approximation — the correct conversion for compound calculations uses the (1 + r)^(1/12) − 1 formula.
A first-time buyer models three scenarios before making an offer: 10%, 15%, and 20% deposit on a £280,000 property. The calculator shows exactly how the monthly payment and total interest cost change with each deposit level, making the decision visible rather than speculative.
Generally when you plan to stay 5+ years, your price-to-rent ratio is below 20, and you have stable income.
Home price divided by annual rent. Below 15 = buy, 15–20 = toss-up, above 20 = rent.
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