About the Rent vs Buy Calculator
Buying isn’t always better than renting. This calculator compares your net worth after a chosen number of years if you buy a home versus if you rent a similar home and invest the money you’d otherwise have spent on the deposit and higher monthly costs.
How does the Rent vs Buy Calculator work?
The buyer pays a deposit and purchase costs, then mortgage repayments and ownership costs. Their wealth is the home’s value (after selling costs) minus the remaining loan.
The renter invests the deposit and purchase costs instead, plus any monthly saving compared with owning. Whichever side spends less in a year invests the difference.