1. What is the Rent vs Buy Calculator?

The Rent or Buy Calculator helps you compare the costs of buying a property (including mortgage and stamp duty) versus renting in the UK. It provides a simple financial comparison to help with housing decisions.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Mortgage — Monthly mortgage payment in GBP
• Stamp Duty — Stamp duty land tax amount in GBP
• Rent — Monthly rental payment in GBP

Explanation: The calculator sums your buying costs and compares them directly with rental costs to show which option is financially better in the short term.

3. Importance of Rent vs Buy Calculation

Details: This comparison is crucial for financial planning when deciding between renting and buying property. It helps assess immediate financial impacts, though long-term considerations like property value appreciation should also be considered.

4. Using the Calculator

Tips: Enter your estimated monthly mortgage payment, total stamp duty amount, and comparable monthly rent. All values must be in GBP and non-negative.

5. Frequently Asked Questions (FAQ)

Q1: Should I include other homeownership costs?
A: For a more complete comparison, consider adding maintenance, insurance, and service charges to the buy cost if significant.

Q2: How accurate is this calculator?
A: It provides a basic comparison. For comprehensive analysis, consult a financial advisor and consider long-term factors.

Q3: What about the deposit amount when buying?
A: This calculator focuses on ongoing costs. The initial deposit is a separate consideration in the buy vs rent decision.

Q4: Does this account for rent increases?
A: No, this is a static comparison. Rent typically increases over time while mortgage payments may stay fixed.

Q5: What's the current stamp duty threshold?
A: Stamp duty rates change. Check UK government websites for current thresholds and first-time buyer reliefs.