Buying
Renting
Last updated 3 September 2026
Why the answer depends on how long you stay
Buying front-loads its costs. The deposit leaves your pocket on day one, the early mortgage years are mostly interest rather than equity, and upkeep starts immediately. Renting spreads its cost evenly but never stops. That means buying usually looks worse in the first few years and better after enough of them — the break-even point is where the two finally meet, and it moves a lot depending on rates, rent, and how fast prices rise. This calculator finds that crossing point rather than declaring one option universally better, because over three years and over twenty the honest answers are often opposite.
The costs each side hides
Comparing a monthly rent against a monthly mortgage payment is the standard mistake, because the two are not equivalent. Ownership adds property tax, buildings insurance, maintenance and often service charges, plus the one-off transaction costs of buying and eventually selling — typically several per cent of the price at each end. Renting adds none of these but builds no equity.
The less visible factor is opportunity cost. A deposit tied up in a property is money not invested elsewhere, and a fair comparison has to account for what it might otherwise have earned. That is why the break-even point usually sits several years out: the upfront costs of buying have to be recovered through equity and rent avoided before ownership comes out ahead, and a move before then generally leaves you worse off than renting would have.
Assumptions and limitations
What the maths does. It compares the running cost of renting against the running cost of owning over the period you choose, using the growth, rate and cost figures you supply, and reports where the two cross over.
The answer is only as good as the growth assumptions. House price growth and rent growth are guesses about the future, and small changes to either move the break-even point by years. Property prices can fall as well as rise, and have done so for extended periods in many markets.
The comparison is not purely financial. Buying carries transaction costs that only pay back over time, ties up capital that could have been invested elsewhere, and reduces your ability to move quickly. Renting keeps flexibility but builds no equity. Which matters more depends on your circumstances, not on arithmetic.
What is not included unless you enter it. Stamp duty or transfer tax, legal and survey fees, agent fees on sale, service charges and ground rent, maintenance and major repairs, buildings insurance, and the return you would have earned by investing the deposit instead.
Assumptions that apply to every finance calculator here
Currency is a display choice only. Changing the currency symbol relabels the output; it does not convert anything and no exchange rate is used anywhere in this tool.
Tax and lending rules vary by country. Nothing here is adjusted for the rules where you live — income tax, capital gains tax, stamp duty, lending caps, affordability tests and consumer-credit regulation all differ, and several of them can change the real answer materially.
Rates and returns are not guaranteed. Any rate you enter is treated as fixed for the whole period. Real interest rates move, real investment returns vary year to year and can be negative, and past performance does not predict future results.
This is an estimate, not advice. The result is arithmetic on the numbers you typed. It is not an offer, a quote, an approval, an investment recommendation or financial advice. Before committing to anything, get figures from the actual lender, provider or a qualified adviser in your country.
Common questions
What does the break-even point mean here?
It's the year at which buying stops being more expensive than renting. Stay longer than that and buying comes out ahead on these numbers; move sooner and renting does.
Why is the deposit treated as an investment when renting?
Because if you rent, that money isn't spent — it can sit invested and grow. Ignoring that would flatter buying, so the comparison counts what the deposit could reasonably have earned instead.
Are stamp duty, legal fees and taxes included?
No. Purchase taxes, legal fees and the tax treatment of property differ enormously between countries, so including a single figure would mislead more often than it helped. Add your own local costs to the buying side when comparing.
Is my information stored anywhere?
No. Everything is calculated in your browser and nothing is uploaded or saved.