There are a variety of costs involved with buying and selling a property, compared with renting, that you should take into account. To help with this, the calculator will take into account the common costs of buying, how much you will get back after selling, and compare that to renting for the same period of time.


per month

Property price

Buying tends to be better the longer you stay because the upfront fees are spread out over many years.


What Are Your Mortgage Details?


£1,144 Per Month




Capital & Interest Payment Breakdown


Predict the future

This calculator will assume you’ll sell your property at the end of your stay when buying, and spend your would-be mortgage deposit on stocks or another investment when renting.


Worth £315,303 after 5 years


Monthly investment

Will you be investing additional money whilst you are buying or renting? You might have money left over after paying your monthly mortgage/rent and would like to add it to your investment account.

Your mortgage is £1,144 and your rent is £460, the difference is £684.

per month
per month

Stamp Duty

Stamp duty is a government tax paid on homes costing £125,001 or more.

First-time-buyers will pay no Stamp Duty on the first £300,000 for properties worth up to £500,000. You pay a different tax if your property or land is in Scotland or Wales, however this calculator does not support that option, so just select "Do not include".


Buying and Selling Costs

There are a variety costs to pay when you are buying/selling your property. Costs that do not apply if you were renting e.g. surveyor’s and legal fee





Maintenance and Service Charge

Homeowners are responsible for all the costs of keeping the house maintained and repairs, for example replacing the boiler or getting a new fridge if it breaks. This is in addition to any renovation work like remodelling the bathroom or kitchen.

You may also have to pay service charge and ground rent if you are purchasing a leasehold property.


£3,000 spent per year


£0 spent per year

Additional Renting Costs

These are the costs on top of rent, such as the initial deposit and agency fee.



Renting is better by:


over the same period.

Buying after 5 years
Renting after 5 years


After 5 years, the net gain/loss from buying and selling a property would be -£30,581.

In comparison, if you were renting and invested your £30,000 deposit, the net gain/loss would be -£20,638.

That's a difference of £9,943, so you're better off renting.

Buying after 5 years


You bought your property for £300,000 and sold it for £315,303 after 5 years.

During that time, you paid £68,664 in mortgage payments. £24,884 was interest, and you paid off £43,781 from the £270,000 mortgage principle, meaning you still owed the bank £226,219 at the time of selling.

Therefore, from the £315,303 sale money, £226,219 goes to the bank for your mortgage.

So, you actually received £89,084 from the sale.

Now, let’s go through the expenses:

  • £68,664 in mortgage payments.
  • £15,000 for maintenance and repairs over 5 years.
  • £6,000 in buying and selling costs.

That leaves you with -£581.

But wait, there's also the £30,000 deposit, if you take that into account too, then overall you’ve lossed -£30,581.

Renting after 5 years


You start off with £30,000* as your investment capital, and it grows to £38,288, which is an increase of £8,288.

In total, your investments increased to £8,288

During this time, you paid £29,306 in rent, spent £80 on your agency fee, but get £460 back from your initial deposit.

Overall, you come out at -£20,638.

*The initial investment capital is not included, because we are calculating the net increase/decrease for both scenarios.

Numbers don't say everything

There are other factors to consider when trying to decide if you're better off buying or renting.

For example, the ease of mind knowing you don't have to move when your tenancy contract is up, or maybe you want the flexibility to move at a moment's notice. A negative factor for buying can be a positive for renting, and vice versa. This is not an exhaustive list, merely some things to think about.


  • Permanent

    You won't need to worry about moving homes or renewing your contract. This is often outside of your control, and is up to the letting agency or landlord, so can be stressful for renters not knowing their future.

  • Control

    You can decide how you want the rooms to look, paint the walls, or even redo the place without anyone else's permission

  • Capital

    Payments towards you mortgage means you are retaining capital, compared to paying rent (where you'll never seeing the money again).

  • Hidden fees

    If you own a flat you will have to pay service charge and ground rent. The actual amount is out of your control, and there have been horror stories of extortionate raises in such fees.

  • Time

    The process of finding and purchasing a property can take much longer than finding a place to rent.

  • Equally, selling your property will be more work than simply moving out of a rental.

  • Risk

    Furthermore, there is a risk you might not actually sell your property for the price you want.


  • Flexibility

    You have the freedom of moving without having to worry about finding a buyer or letting agency.

  • Location

    A good location often means a higher property price, but perhaps not as much compared to the increase in rent.

  • Large bills

    As a renter you do not need to foot the bill if the boiler needs replacing or the washing machine breaks.

  • Cash

    Your would-be deposit is more liquid, and can be used for something else if you decide.

  • Control

    It can be stressful not knowing the future. Your rent might go up when it comes to renewing your contract, or your landlord could decide to sell the property without warning.

  • Home

    It's hard to make the place feel like home when you can't change the furniture/appliances or decorate the walls.

  • Pets

    You could be limited in your choice of rental properties if you want to have a pet.


See how the buying and renting totals were calculated.



£300,000 x 10% = £30,000

Property price x Deposit (%)

Mortgage paid:

£13,732 + £13,732 + £13,732 + £13,732 + £13,732
= £68,664

5 years of capital + interest.

Capital from sale:

(£300,000 x 1% 5) - £226,219 = £89,084

(Property price x Growth rate % Years) - Outstanding mortgage

Investment growth:

£0 per month with 5% growth rate after 5 years = £0

Monthly investment with X Growth rate after X Years


£300,000 x 1% x 5 = £15,000

Property price x Maintenance (%) x Years

Service Charge

£300,000 x 0% x 5 = £0

Property price x Service Charge (%) x Years

Stamp duty


Buying/selling costs

(£300,000 x 1%) + (£300,000 x 1%) = £6,000

Property price x Cost of buying (%) + Property price x Cost of selling (%)

Net gain/loss

£89,084 - £30,000 - £68,664 - £15,000 - £0 - £0 - £6,000
= -£30,581

Capital from sale - Deposit - Mortgage paid - Maintenance/repairs - Service Charge - Stamp duty - Buying/selling costs
= Net gain/loss




Your would-be mortgage deposit

Investment growth from would be deposit

£30,000 x 5% 5 = £8,288

Capital x Investment return rate (%) Years

Investment growth from additional monthly

£0 per month with 5% growth rate after 5 years = £0

Monthly investment with X Growth rate after X Years

Rent paid

£5,520 + £5,686 + £5,856 + £6,032 + £6,213
= £29,306

5 years of rent paid with 3% year on year increase

Deposit returned

£460 x 1 = £460

Monthly rent x Renting deposit months

Agency fee


Initial rental agency fee

Net gain/loss

£8,288 + £460 - £80 - £29,306
= -£20,638

Investment growth + Deposit returned - Agency fee - Rent paid
= Net gain/loss


Wondering what has changed since your last visit?

7th February 2022

Previously, only the mortgage interest was deducted from the buy scenario as part of the cost of the mortgage. However, this was incorrect, because the total payments paid over the course of the mortgage is the actual cost of the mortgage. The buy scenario has been updated so that the total mortgage payments paid is deducted from the total.