# Rent vs buy calculator UK: is buying cheaper? | ComputeNow

URL: https://computenow.co.uk/rent-vs-buy-calculator/

> Compare the cost of renting with buying over the years you choose, using ONS house price and rent growth, stamp duty, upkeep and interest.

This calculator shows a worked example below. To use your own figures, add them to the URL as query parameters (listed in https://computenow.co.uk/llms.txt), for example https://computenow.co.uk/rent-vs-buy-calculator/?<parameter>=<value>.

[What's Left, step 2 of 7: What does my home cost each month?](https://computenow.co.uk/money-plan/#steps)

# Rent vs buy calculator

Compare the real cost of renting with buying over the next few years.
Rates checked 18 October 2026
By the ComputeNow team, checked against GOV.UK and HMRC[Sources (4)](#sources)[How we calculate](https://computenow.co.uk/methodology/)

Buying works out
£11,059.85
cheaper than renting over 5 years, on these assumptions.

## Cost over 5 years

| Item | Renting | Buying |
| --- | --- | --- |
| Rent, rising 3.8% a year | £77,683.92 | – |
| Mortgage interest | – | £54,662.08 |
| Stamp duty and fees | – | £5,500.00 |
| Upkeep at 1.0% of value a year | – | £12,500.00 |
| Interest lost on your deposit at 4.0% | – | £5,416.32 |
| Home value growth at 0.9% a year | – | −£11,454.33 |
| Total cost | £77,683.92 | £66,624.07 |

This is an estimate, not advice. Unless you change them, house prices and rents grow at the latest ONS yearly rates (0.9% to August 2026, 3.8% to September 2026). It assumes a 25-year repayment mortgage and that these rates stay the same; if prices fall, renting can come out ahead. It ignores selling costs.

### Next steps

- [Mortgage calculator](https://computenow.co.uk/mortgage-calculator/?price=250000&deposit=25000&rate=5.13)The monthly payment if you buy.
- [Mortgage affordability](https://computenow.co.uk/mortgage-affordability-calculator/)Check you could borrow enough.

Added. [See what's left each month](https://computenow.co.uk/money-plan/)
[What's Left](https://computenow.co.uk/money-plan/) adds up your monthly figures from each calculator and shows what is left each month.
[Buying works out £11,059.85 Breakdown](#result)

## What counts as a cost

Mortgage capital repayments are not counted as a cost, because you keep that money as equity in your home.
We include stamp duty plus £3,000 of buying fees, upkeep at 1% of the price a year, the 4% your deposit could have earned in savings, and house prices rising 2% a year.
The biggest unknown is house prices: growth makes buying cheaper, a fall makes it more expensive.

## Related calculators

[Mortgage calculator Monthly repayments and total interest](https://computenow.co.uk/mortgage-calculator/)[Mortgage affordability calculator How much you could borrow](https://computenow.co.uk/mortgage-affordability-calculator/)[Stamp duty calculator Tax when you buy a home](https://computenow.co.uk/stamp-duty-calculator/)

## Guides and help

### Our guides

[How much does it cost to buy a home? Deposit, stamp duty, mortgage and the income you need](https://computenow.co.uk/guides/cost-of-buying-a-home/)[Stamp duty in 2026 across the UK SDLT, LBTT and LTT bands, first-time buyers and second homes](https://computenow.co.uk/guides/stamp-duty-uk-2026/)

### Official services and free advice

[Private renting GOV.UK: deposits, repairs and your rights](https://www.gov.uk/private-renting)[Lifetime ISA GOV.UK: a government bonus for a first home or later life](https://www.gov.uk/lifetime-isa)[Check your Council Tax band GOV.UK: a cost to budget for in a new home](https://www.gov.uk/council-tax-bands)[Tax on rental income GOV.UK: working out what is taxable](https://www.gov.uk/guidance/income-tax-when-you-rent-out-a-property-working-out-your-rental-income)

## Sources

Each source was last checked on 18 October 2026.

- [Bank of England: quoted household interest rates (September 2026)](https://www.bankofengland.co.uk/boeapps/database/FromShowColumns.asp?SearchText=IUMBV34&Travel=NIxAZx)
- [ONS: Private rent and house prices](https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/privaterentandhousepricesuk/latest)
- [GOV.UK: Stamp Duty Land Tax residential rates](https://www.gov.uk/stamp-duty-land-tax/residential-property-rates)
- [MoneyHelper: Mortgage calculator guidance](https://www.moneyhelper.org.uk/en/homes/buying-a-home/mortgage-calculator)
These results are an estimate, not financial advice. They use the 2026/27 rates in force on 24 October 2026 and the inputs shown, so your actual tax, pay or costs may differ. Before making a decision about your money, check the figures with HMRC or your provider, or speak to a regulated financial adviser. Free, impartial guidance is available from MoneyHelper.
This page explains the rules using the 2026/27 rates in force on 24 October 2026. It is general information, not financial advice. For decisions about your own money, speak to a regulated financial adviser, or get free, impartial guidance from MoneyHelper.