Should you rent or buy? It depends on far more than the rent versus the mortgage. This calculator compares both choices fairly over the years you plan to stay, counting the equity you build, the real costs of owning, selling fees, and the return a renter earns by investing the money a buyer ties up in a home.
An estimate from your assumptions, not financial advice.
You often hear that renting wastes money while buying builds wealth. The truth is more balanced. Buying has large costs that never come back — mortgage interest, property tax, insurance, maintenance and the fees to buy and sell. Renting frees up money that can be invested instead. Which choice ends up ahead depends on your numbers and, above all, how long you stay.
How the model is fair. The buyer pays the deposit and closing costs on day one; the renter invests that same amount. Each month, whichever option is cheaper, the difference is invested on that side. At the end, the buyer\'s wealth is their home equity after selling plus their investments, and the renter\'s wealth is their investment pot. We compare those two totals.
Because buying and selling are expensive, a short stay rarely favours buying — there isn\'t time to recover the costs. The longer you stay, the more the equity and any appreciation work in the buyer\'s favour. Change the "Years you\'ll stay" and watch the result flip.
This is a money comparison only. It leaves out taxes on investment gains, tax deductions, surprise repairs, the freedom to move easily, and the security of owning your home. Use it to understand the financial trade-off, then weigh the things that matter to you. For the monthly cost of owning on its own, see the Mortgage Calculator.
Both sides start with the same money. The buyer spends the deposit and closing costs upfront; the renter invests that same amount instead. Each month, whichever choice costs less, the saving is invested on that side. At the end we compare each household's total wealth, not just the rent paid versus the mortgage paid.
The home's value at the end, minus the mortgage still owed and the cost of selling, plus any money the buyer was able to invest when owning cost less than renting. The renter's wealth is simply their investment pot.
Buying has big upfront costs (deposit, closing fees) and selling costs at the end. Over a short stay those costs dominate and renting often wins. Over a long stay the equity and appreciation usually catch up. Try changing the years to see the tipping point.
No. The result depends entirely on your assumptions — rent, prices, appreciation, the investment return and how long you stay. This tool shows the trade-off; it does not claim one choice is always better.
Taxes on investment gains, mortgage-interest tax deductions, big one-off repairs, moving costs, rent deposits, and the things money can't measure like stability or freedom to move. Treat the result as a guide, not advice.
A calculator gives you one answer. A cashbook shows you the whole picture: write down cash in and cash out, see where the money goes in charts and on a calendar, and share a ledger with your family, team or friends.
This takes a few seconds.
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