Buy vs Rent Calculator
Which option leaves you better off — and by how much?
Model the true cost of buying versus renting over your chosen time horizon. Includes stamp duty, mortgage payments, opportunity cost of your deposit, and projected net wealth for both options.
This calculator compares the long-term financial outcomes of buying versus renting based on your inputs. It is illustrative only — not financial or property advice. Property and investment returns are assumptions, not guarantees. Speak to a regulated mortgage adviser and financial adviser before making property decisions.
The property
We'll calculate stamp duty and LTV automatically
Enter your expected rate e.g. 4.5
First time buyer
Reduces or eliminates stamp duty on eligible properties
Buying an additional or second property
Adds a 3% SDLT / 6% LBTT surcharge
Property type
Ownership costs
Most advisors suggest 1–2% of property value per year for repairs and upkeep
Renting
Investment assumptions
Applied to the deposit and any monthly surplus if renting. UK equity long-run real return ~5–7%.
Years to compare
Scottish income tax rates
Applies to residents of Scotland only
Upfront costs to buy
| Stamp duty (SDLT) | £5,000 |
| Legal fees (estimated) | £2,000 |
| Survey (estimated) | £800 |
| Total upfront | £7,800 |
| LTV ratio | 80.0% |
Monthly cost comparison
| Monthly mortgage payment | £1,556 |
| Monthly ownership costs | £317maintenance + insurance |
| Total monthly buyer cost | £1,873 |
| Monthly rent (current) | £1,400 |
Buying costs £473 more per month — the renter invests this difference.
Verdict after 20 years
Buyer net wealth✓ winner
£612,945
Renter net wealth
£385,333
Buying leaves you £227,613 better off after 20 years.
Break-even: Buying overtakes renting in year 1.
Where the renter's wealth comes from
| Invested deposit (final value) | £282,712 |
| Invested monthly surplus (final value)~£134/month avg surplus invested | £102,621 |
| Total renter portfolio | £385,333 |
Where the buyer's wealth comes from
| Final property value | £696,426 |
| Remaining mortgage | −£83,481 |
| Equity | £612,945 |
Net wealth over time
Year-by-year breakdown
| Year | Property value | Buyer equity | Buyer wealth | Renter wealth | Cum. mortgage | Cum. rent |
|---|---|---|---|---|---|---|
| 1← break-even | £362,250 | £88,453 | £88,453 | £80,922 | £18,676 | £16,800 |
| 2 | £374,929 | £107,619 | £107,619 | £92,113 | £37,352 | £34,104 |
| 3 | £388,051 | £127,528 | £127,528 | £103,577 | £56,028 | £51,927 |
| 4 | £401,633 | £148,207 | £148,207 | £115,317 | £74,704 | £70,285 |
| 5 | £415,690 | £169,688 | £169,688 | £127,338 | £93,380 | £89,193 |
| 6 | £430,239 | £192,002 | £192,002 | £139,641 | £112,056 | £108,669 |
| 7 | £445,298 | £215,182 | £215,182 | £152,231 | £130,732 | £128,729 |
| 8 | £460,883 | £239,262 | £239,262 | £165,109 | £149,408 | £149,391 |
| 9 | £477,014 | £264,277 | £264,277 | £178,278 | £168,084 | £170,673 |
| 10 | £493,710 | £290,266 | £290,266 | £191,740 | £186,760 | £192,593 |
| 11 | £510,989 | £317,266 | £317,266 | £205,601 | £205,436 | £215,171 |
| 12 | £528,874 | £345,317 | £345,317 | £220,464 | £224,112 | £238,426 |
| 13 | £547,385 | £374,461 | £374,461 | £236,401 | £242,788 | £262,379 |
| 14 | £566,543 | £404,741 | £404,741 | £253,491 | £261,464 | £287,050 |
| 15 | £586,372 | £436,203 | £436,203 | £271,816 | £280,140 | £312,462 |
| 16 | £606,895 | £468,893 | £468,893 | £291,465 | £298,816 | £338,636 |
| 17 | £628,136 | £502,861 | £502,861 | £312,535 | £317,492 | £365,595 |
| 18 | £650,121 | £538,156 | £538,156 | £335,128 | £336,167 | £393,363 |
| 19 | £672,875 | £574,833 | £574,833 | £359,355 | £354,843 | £421,963 |
| 20 | £696,426 | £612,945 | £612,945 | £385,333 | £373,519 | £451,422 |
Want a complete retirement projection?
For a complete retirement projection including tax, State Pension, and 10,000 Monte Carlo simulations — use our full retirement planner.
This calculator models the long-term financial comparison between buying and renting based on the assumptions you provide. It is for informational and illustrative purposes only and does not constitute financial or property advice. Property values, rental costs, mortgage rates, and investment returns are assumptions — actual outcomes will differ. The model does not account for all costs of homeownership (maintenance, insurance, service charges, ground rent) or all costs of renting (deposits, moving costs, rent increases). Stamp Duty Land Tax (SDLT) and Land and Buildings Transaction Tax (LBTT) figures are calculated based on current rates which are subject to change. Mortgage eligibility and available rates depend on your personal financial circumstances and lender criteria. Selvox accepts no liability for decisions made in reliance on these outputs. Property purchase decisions should involve a qualified mortgage adviser, solicitor, and independent financial adviser.