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Rent vs Buy Calculator

Compare the financial implications of renting versus buying a home based on your specific situation. Make a smarter decision with our comprehensive analysis of long-term costs and benefits.

Note: This calculator provides insights only and is not financial advice. Always consult with a qualified financial advisor before making important financial decisions.

Choose Your Market

Select your region to load market-specific defaults and tax rates

Selected
🇬🇧

United Kingdom

UK market conditions & tax rates

Currency:GBP (£)
Avg. Home Price:£350,000
Mortgage Rate:4.5%
CGT Rate:20%
🇺🇸

United States

US market conditions & tax rates

Currency:USD ($)
Avg. Home Price:$400,000
Mortgage Rate:6.5%
CGT Rate:15%

All values can be customized after selection

All parameters can be customized after selection

Home Purchase

Configure buying scenario

£
10%
£35,000
5%50%

Rental Details

Configure rental scenario

£

Investment Assumptions

Market parameters

Tax Settings

Tax rates and regulations

UK Tax Allowances

UK-specific tax benefits and allowances

Enable tax-free investment growth within ISA limits

£

Tax-free capital gains per year

£

Tax-free dividend income per year

Note: These allowances significantly improve investment returns. Taxable investments benefit from annual CGT and dividend exemptions.

Should You Rent or Buy a Home?

Deciding whether to rent or buy a home is one of the biggest financial decisions you'll make. Our rent vs buy calculator helps you compare the long-term financial implications of both options based on your specific situation.

The calculator takes into account factors like home price, down payment, mortgage rate, property taxes, maintenance costs, rent increases, and investment returns to give you a comprehensive analysis of which option might be better for you financially.

Key Factors to Consider When Deciding to Rent or Buy

  • Time Horizon: How long do you plan to stay in the home? Generally, the longer you stay, the more buying makes financial sense.
  • Housing Market: Is the market overvalued or undervalued? What are the trends in home appreciation in your area?
  • Investment Returns: What could you earn if you invested the down payment and the difference in monthly costs?
  • Tax Implications: How do mortgage interest deductions and property taxes affect your tax situation?
  • Lifestyle Flexibility: Do you value the flexibility of renting or the stability of owning?

Our calculator helps you quantify the financial aspects of this decision, but remember to consider non-financial factors as well, such as the desire to customize your living space, community stability, and personal preferences.