The buy-vs-rent decision depends on down payment, mortgage rate, rent, and how long you stay.
In expensive cities, renting often wins for stays under 5 years. Buying wins long-term.
This calculator earns its keep at decision points: before accepting a loan, comparing investment platforms, or negotiating salary. The difference between the headline figure and the true cost or return is only visible with accurate arithmetic.
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.
An employee receives a counter-offer from another employer: a £4,000 salary increase but no pension contribution versus the current role's lower salary with 8% employer pension. Running both through the finance calculator shows the true net financial value of each offer.
Generally if staying 5+ years, mortgage rate < 8%, and price-to-rent ratio < 20.
CalcPlanet – Free Online Calculators
725+ free calculators and 108 tools for math, money, health, and everyday life. Instant results, verified formulas, no sign-up.
By CalcPlanet Editorial · Reviewed against our Editorial Standards and Formula Sources.
CalcPlanet calculators are free, privacy-first, and formula-reviewed.
Editorial Standards · Formula Sources · Privacy · Terms · Contact
