Rent vs. Buy Calculator
Compare the true long-term cost of buying vs. renting a home.
Buy Path
Net Worth at End£11,593.00
Monthly Payment
£158.00
Total Invested
£2,000.00
Rent Path
Net Worth at End£2,835.00
Monthly Rent
£1,500.00
Investment Gain
Compounding
1
Break-even at Year 1
Buying becomes more economical than renting from Year 1 onwards.
Savings Insight
Property vs Rent Comparison
Buying holds a mathematical edge after Year 1. If property appreciation drops below 3.5%, renting remains superior.
How It Calculates
Over a horizon of 60 months, your fixed monthly commitment is £158.00. The Expert interest leakage totals £1,482.00, representing a 6.9% annual cost of capital.
💡Total Interest on £10,000.00: £1,482.00
Monthly Commitment: £158.00
Tips to Save More
- Adjust the Loan Term for maximum compounding effect.
- Expert rate audits can reveal hidden interest leakage.
Example Scenarios
Pre-calculated scenarios based on current market data.
Live Data
£5,000 over 3 years
6.9% APRMonthly Payment£154.16
Total Interest£549.65
Over a horizon of 36 months, your fixed monthly commitment is £154.16. The Expert interest leakage totals £549.65, representing a 6.9% annual cost of capital.
Source: Bank of England · Updated 2026-05-01
£10,000 over 5 years
7.5% APRMonthly Payment£200.38
Total Interest£2,022.77
Over a horizon of 60 months, your fixed monthly commitment is £200.38. The Expert interest leakage totals £2,022.77, representing a 7.5% annual cost of capital.