Stamp Duty CalculatorBuy vs Rent Calculator
A fair 5-year total-cost comparison. Buying includes SDLT, legal, mortgage interest, maintenance, insurance and selling costs — net of equity built and property appreciation. Renting includes rent and the opportunity cost of your deposit sitting elsewhere.
Buy scenario
Rent scenario
| Line | Buy | Rent |
|---|---|---|
| Upfront one-off (SDLT, legal, survey) | — | — |
| Mortgage interest over 5 yrs | — | — |
| Running costs over 5 yrs (insurance, maintenance, council tax) | — | — |
| Total rent over 5 yrs | — | — |
| Equity built (principal + appreciation) | — | — |
| Selling costs (agent + legal + CGT exempt) | — | — |
| Opportunity cost (deposit invested instead) | — | — |
Why 5 years
Below 3 years the one-off buying costs (SDLT, legal, moving, selling) rarely amortise — renting wins. Above 7 years, equity and appreciation dominate — buying typically wins. 5 years is the honest mid-point and matches most UK fixed-rate mortgage terms.
What this calculator deliberately excludes
Lifestyle flexibility (renting = easier to move), home improvement spending (buyer-controlled, highly variable), and the possibility of negative house-price moves. On a long-horizon view the UK long-run average is +3-5%/year nominal but single 5-year windows have been negative. Model with the appreciation input set to 0% or -2% to see the downside case.
Frequently asked questions
Is renting really dead money?
Not exactly. The real comparison is total 5-year cost after accounting for equity built, appreciation, SDLT, buying/selling costs and the opportunity cost of your deposit sitting idle. This calculator makes that comparison honestly.
What appreciation rate should I use?
UK long-run nominal house price growth is around 3-5%/year. Short-term is far more volatile. For a conservative view use 1-2%, central 2.5-3.5%, bullish 4-5%.
Does it account for mortgage capital repayment?
Yes. The "Equity built" line includes both capital repaid (via amortisation) and appreciation on the home. Mortgage interest is treated as a cost; capital repayment is treated as equity, not cost.
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Last reviewed: 1 October 2026.