Buy-vs-Rent Calculator (UK, 10-year)
Punch in property price, rent, mortgage rate and your assumptions for growth. The calculator runs a 10-year cash-flow on both sides and tells you the crossover year.
Mortgage inputs
Market assumptions
Break-even year: —
Enter your numbers to see the 10-year comparison.
Buy-vs-rent is a cash-flow model, not a life-decision engine. It ignores maintenance variance, insurance, tax on rental income, and the fact that you can redirect "bought" deposit into other investments if you rent. Treat the output as a starting point, not gospel.
What the calculator does
The buy-vs-rent calculator runs a 10-year cash-flow on two parallel tracks:
- Buying: deposit upfront + (monthly mortgage × 12 × years) + (annual maintenance on projected value) − (equity gained from price growth).
- Renting: (monthly rent × 12) + each year grown by your rent-growth assumption.
It tells you two things:
- Break-even year. The first year at which total buy cost (net of equity) drops below total rent outflow. If buying never breaks even inside the 10-year horizon, the calculator says so.
- 10-year differential. The net cost gap at year 10. Buy-cheaper or rent-cheaper, in pounds.
What it deliberately ignores
- Investment returns on an un-spent deposit. If you rent instead of buy and invest the deposit, that money compounds. The simple version here treats the deposit as sunk on the buy side; for a sharper comparison, model an alternative-investment growth rate separately.
- Stamp duty and transaction costs. These matter for short horizons and are covered by the stamp duty calculator.
- Tax on rental income for landlords. Irrelevant here — we're comparing renting vs buying to live in.
- Maintenance variance. A leaky roof in year 7 can blow up the buy side. The 1% rule of thumb averages over a long run.
When buying usually wins
- Low mortgage rates.
- Rent growth outpacing house-price growth.
- You plan to stay 7+ years.
- You're in a high-rent area where mortgage payments are close to (or below) rent.
When renting usually wins
- Mortgage rates well above rent yields.
- You might move inside 3–5 years (stamp duty + fees haven't amortised).
- You're in a high-price / low-rent area (London inner-zone flats often fit this).
- You'd genuinely invest the deposit in something with a higher expected return.
Where Offrly fits
The honest output depends on two accurate numbers: the price of the home you'd buy, and the rent the same home would fetch. Offrly gives you both, free, in about 30 seconds — photo-aware AI reads each live listing, advanced analytics weigh the comparables. Feed those numbers into this calculator for a credible buy-vs-rent call.
Disclaimer: This calculator is market guidance, not regulated advice. It ignores tax, alternative-investment returns, insurance, stamp duty (run the dedicated calculator), and maintenance variance. For a decision this size, consult an independent mortgage broker and, where relevant, a qualified financial adviser.
Get a rent and a price read at the same time
Offrly values any UK property for sale or rent in about 30 seconds — free, no signup. Feed those numbers into the calculator for a sharper buy-vs-rent call.
Value my property free →FAQ: Buy-vs-Rent Calculator (UK, 10-year)
Does this account for the house-price growth I get when buying?
Yes. The 10-year buy cost is net of equity gained — i.e. it subtracts (projected property value − original price) from total outflows. That's what makes a fair comparison possible.
What growth rate should I use?
Long-run UK nominal house-price growth is around 3%. Rent growth has outpaced that recently at ~3–6%. Use your own view; the calculator makes it obvious how sensitive the answer is.
What about investing the deposit if I rent instead?
The simple version here doesn't model alternative investments. If you rent and invest the deposit at a real after-tax return above house-price growth, renting can outperform buying even past the break-even year.
Is this regulated advice?
No. This is a cash-flow comparison tool, not financial or mortgage advice. For a decision this size, speak to an independent mortgage broker and, if relevant, a qualified financial adviser.
Does Offrly value both sale and rent?
Yes. Sale valuation is at /free-house-valuation and rental valuation at /free-rental-valuation. Both run in about 30 seconds and return live comparables.