Compare renting & investing vs purchasing & investing as a long-term wealth-building strategy.
Years into the Future: 25
| Year | Renter Investment Fund | Buyer Investment Fund | Property Value | Mortgage Remaining | Buyer Equity | Renter Net Worth | Buyer Net Worth | Difference |
|---|---|---|---|---|---|---|---|---|
| 0 | £38,400.00 | £0.00 | £300,000.00 | £270,000.00 | £30,000.00 | £38,400.00 | £30,000.00 | -£8,400.00 |
| 1 | £46,272.00 | £3,110.90 | £304,500.00 | £264,086.48 | £40,413.52 | £46,272.00 | £43,524.42 | -£2,747.58 |
| 2 | £54,737.76 | £6,470.67 | £309,067.50 | £257,896.36 | £51,171.14 | £54,737.76 | £57,641.81 | £2,904.05 |
| 3 | £63,844.42 | £10,099.22 | £313,703.51 | £251,416.71 | £62,286.80 | £63,844.42 | £72,386.02 | £8,541.60 |
| 4 | £73,642.89 | £14,018.05 | £318,409.07 | £244,633.98 | £73,775.09 | £73,642.89 | £87,793.14 | £14,150.25 |
| 5 | £84,188.15 | £18,250.39 | £323,185.20 | £237,533.99 | £85,651.21 | £84,188.15 | £103,901.60 | £19,713.45 |
| 6 | £95,539.56 | £22,821.32 | £328,032.98 | £230,101.91 | £97,931.06 | £95,539.56 | £120,752.39 | £25,212.82 |
| 7 | £107,761.26 | £27,757.93 | £332,953.47 | £222,322.21 | £110,631.26 | £107,761.26 | £138,389.19 | £30,627.93 |
| 8 | £120,922.47 | £33,089.46 | £337,947.78 | £214,178.62 | £123,769.16 | £120,922.47 | £156,858.61 | £35,936.14 |
| 9 | £135,097.98 | £38,847.51 | £343,016.99 | £205,654.12 | £137,362.87 | £135,097.98 | £176,210.38 | £41,112.40 |
| 10 | £150,368.55 | £45,066.21 | £348,162.25 | £196,730.91 | £151,431.34 | £150,368.55 | £196,497.55 | £46,129.00 |
| 11 | £166,821.40 | £51,782.40 | £353,384.68 | £187,390.31 | £165,994.37 | £166,821.40 | £217,776.77 | £50,955.37 |
| 12 | £184,550.70 | £59,035.89 | £358,685.45 | £177,612.83 | £181,072.62 | £184,550.70 | £240,108.52 | £55,557.81 |
| 13 | £203,658.19 | £66,869.66 | £364,065.73 | £167,378.01 | £196,687.72 | £203,658.19 | £263,557.38 | £59,899.19 |
| 14 | £224,253.71 | £75,330.13 | £369,526.72 | £156,664.48 | £212,862.24 | £224,253.71 | £288,192.38 | £63,938.66 |
| 15 | £246,455.90 | £84,467.44 | £375,069.62 | £145,449.83 | £229,619.79 | £246,455.90 | £314,087.23 | £67,631.33 |
| 16 | £270,392.88 | £94,335.73 | £380,695.66 | £133,710.63 | £246,985.04 | £270,392.88 | £341,320.77 | £70,927.89 |
| 17 | £296,203.03 | £104,993.49 | £386,406.10 | £121,422.34 | £264,983.76 | £296,203.03 | £369,977.25 | £73,774.22 |
| 18 | £324,035.78 | £116,503.86 | £392,202.19 | £108,559.28 | £283,642.91 | £324,035.78 | £400,146.77 | £76,110.99 |
| 19 | £354,052.51 | £128,935.07 | £398,085.22 | £95,094.58 | £302,990.65 | £354,052.51 | £431,925.72 | £77,873.21 |
| 20 | £386,427.52 | £142,360.77 | £404,056.50 | £81,000.07 | £323,056.43 | £386,427.52 | £465,417.20 | £78,989.69 |
| 21 | £421,349.03 | £156,860.53 | £410,117.35 | £66,246.31 | £343,871.04 | £421,349.03 | £500,731.57 | £79,382.53 |
| 22 | £459,020.35 | £172,520.27 | £416,269.11 | £50,802.47 | £365,466.64 | £459,020.35 | £537,986.91 | £78,966.57 |
| 23 | £499,661.00 | £189,432.79 | £422,513.15 | £34,636.26 | £387,876.89 | £499,661.00 | £577,309.68 | £77,648.69 |
| 24 | £543,508.09 | £207,698.31 | £428,850.84 | £17,713.89 | £411,136.95 | £543,508.09 | £618,835.27 | £75,327.18 |
| 25 | £590,817.69 | £227,425.08 | £435,283.61 | £0.00 | £435,283.61 | £590,817.69 | £662,708.68 | £71,890.99 |
This calculator compares two long-term wealth-building strategies: renting a property and investing the difference in the stock market vs purchasing a property and investing any remaining monthly income. The calculator models how both a renter's investment fund and a buyer's property equity and investment fund grow over time, accounting for rent increases, property value changes, mortgage payments, and stock market growth. No data is ever sent to a server or saved.
1
Enter your general financial details: monthly income, utilities, investment willingness, and expected growth rates.
2
In the Renting section, enter your current or expected monthly rent and the annual rent increase rate.
3
In the Purchase section, enter the property details, all upfront costs, mortgage rate and term.
4
Use the Years slider in the Comparison section to project as far into the future as you like.
5
The comparison table shows year-by-year how both strategies perform. A positive Difference means buying comes out ahead; negative means renting wins.