Determine the cost of renting a property and the total amount of rent you will be required to pay throughout your stay.
Rent
Stay length
Capital / Savings
Do you have capital or savings invested and generating interest? For example, your would-be mortgage deposit.
Investment growth after 5 years: £8,501
Monthly investment
Will you be investing additional money after paying your rent every month?
Total invested after 5 years: £6,000
Investment growth after 5 years: £801
Additional Renting Costs
These are the costs on top of rent, such as the initial deposit and agency fee.
£300
Quick summary
Summary
If you were renting and invested your £30,000 deposit, and contributed £100 per month towards your investments, the net gain/loss would be -£4,391.
Explained
You start with £30,000* as your investment capital, and it grows to £38,501, which is an increase of £8,501.
In addition, you also invested £100 per month, which grew to £6,801 after 5 years, which is an increase of £801.
In total, your investments increased to £15,301.
During this time, you paid £19,892 in rent and spent £100 on your agency fee, but got £300 back from your initial deposit.
Overall, you come out at -£4,391.
*The initial investment capital is not included, because we are calculating the net increase/decrease for both scenarios.
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Breakdown
See how the renting total was calculated.
Renting
- Initial capital
£30,000
Your would-be mortgage deposit
- Investment growth from initial capital
£30,000 with 5% growth rate after 5 years = £8,501
Capital with X Growth rate after X Years.
More details available with our compound interest calculator
- Total monthly investments
£6,000
£100 per month x 60 months (5 years)
- Investment growth from monthly investments
£801
Monthly £100 investment with 5% return rate after 5 years
More details available with our compound interest calculator
- Rent paid
Year 1 £3,600 Year 2 £3,780 Year 3 £3,969 Year 4 £4,167 Year 5 £4,376 Total £19,892 5 years of rent paid with 5% year on year increase
- Deposit returned
£300 x 1 = £300
Monthly rent x Renting deposit months
- Agency fee
£100
Initial rental agency fee
- Net gain/loss
£8,501 + £6,000 + £801 + £300 - £100 - £19,892
= -£4,391Investment growth from initial capital + Total monthly investments + Investment growth from monthly investments + Deposit returned - Agency fee - Rent paid
= Net gain/loss