Is it cheaper to rent or to buy? Enter your rent and a property price to compare your monthly rent against a mortgage payment plus the real costs of owning — and see how the two stack up.
Monthly cost comparison
Comparing renting and buying on the headline monthly figure alone is misleading. A mortgage payment looks like rent, but part of it pays down the capital you own, while renting buys you nothing. Against that, owners face costs tenants don't — maintenance, buildings insurance, ground rent or service charges, and a big deposit plus stamp duty upfront. This tool compares the genuine monthly cost of each, then shows the cash you'd need to get started.
| Cost | Renter | Buyer |
|---|---|---|
| Monthly housing payment | Rent | Mortgage |
| Maintenance & insurance | Landlord pays | You pay (~1%/yr) |
| Upfront cash | Deposit (~1 month) | Deposit + stamp duty |
| Builds equity? | No | Yes |
This is a cost comparison, not a full investment model — it ignores house-price growth, the equity you build each month, and what you'd earn investing your deposit instead. To go deeper, check what you could borrow on the mortgage affordability calculator, your repayments on the mortgage calculator, and your stamp duty on the first-time buyer stamp duty calculator.
It depends on the property, your deposit and how long you stay. Monthly mortgage costs are often similar to rent, but buying carries big upfront costs (deposit and stamp duty) and ongoing maintenance. Buying usually wins if you stay put for several years and your home grows in value.
Beyond the mortgage, owners pay buildings insurance, maintenance (budget around 1% of the value a year), and any ground rent or service charge. Upfront you need a deposit, stamp duty, plus legal and survey fees that renters avoid.
Because the upfront costs of buying take years to recoup, buying typically beats renting after roughly 5 years, though it varies with the deposit, mortgage rate and local house-price growth. Below that, renting can work out cheaper.
No — it compares the monthly cost of renting against the monthly cost of owning plus the upfront cash needed. It deliberately excludes house-price growth and the equity you build, which both tilt the long-term picture further toward buying.
