After 5 years
Renting and investing wins by £75,263
Net wealth: owner vs renter
Owner wealth is home equity net of selling fees plus any leftover savings invested. The renter invests all their savings, plus the monthly difference whenever owning costs more than renting.
Amortisation schedule
Each payment split into interest and principal, with home equity building on the right axis. Switch to yearly for a summary.
| Year | Payment | Interest | Principal | Balance | Equity |
|---|---|---|---|---|---|
| 1 | £25,039 | £18,867 | £6,172 | £393,828 | £106,172 |
| 2 | £25,039 | £18,567 | £6,472 | £387,356 | £112,644 |
| 3 | £25,039 | £18,253 | £6,786 | £380,570 | £119,430 |
| 4 | £25,039 | £17,923 | £7,116 | £373,454 | £126,546 |
| 5 | £25,039 | £17,578 | £7,461 | £365,993 | £134,007 |
Paying down the loan
Mortgage balance falling as equity builds.
Annual cost of each option
Owner outgoings are mortgage payments, capex and insurance; rent rises with your inflation assumption.
Scenario grid
Renter net wealth minus owner net wealth after your holding period, across house price inflation (columns) and investment returns (rows). Everything else stays as you set it.
| Return ↓ / House ↗ | -5% | -4% | -3% | -2% | -1% | 0% | +1% | +2% | +3% | +4% | +5% |
|---|---|---|---|---|---|---|---|---|---|---|---|
| +15% | £256k | £235k | £214k | £192k | £170k | £146k | £121k | £95k | £68k | £40k | £11k |
| +14% | £244k | £224k | £203k | £181k | £158k | £135k | £110k | £84k | £57k | £29k | £223 |
| +13% | £234k | £214k | £192k | £171k | £148k | £124k | £99k | £73k | £46k | £18k | −£11k |
| +12% | £223k | £203k | £182k | £160k | £137k | £113k | £89k | £63k | £36k | £8k | −£21k |
| +11% | £213k | £193k | £172k | £150k | £127k | £103k | £79k | £53k | £26k | −£2k | −£31k |
| +10% | £204k | £183k | £162k | £140k | £118k | £94k | £69k | £43k | £16k | −£12k | −£41k |
| +9% | £194k | £174k | £153k | £131k | £108k | £84k | £59k | £34k | £7k | −£21k | −£50k |
| +8% | £185k | £165k | £144k | £122k | £99k | £75k | £50k | £25k | −£2k | −£30k | −£59k |
| +7% | £177k | £156k | £135k | £113k | £90k | £67k | £42k | £16k | −£11k | −£39k | −£68k |
| +6% | £168k | £148k | £127k | £105k | £82k | £58k | £33k | £7k | −£19k | −£47k | −£76k |
| +5% | £160k | £140k | £119k | £97k | £74k | £50k | £25k | −£687 | −£28k | −£56k | −£85k |
| +4% | £152k | £132k | £111k | £89k | £66k | £42k | £17k | −£9k | −£35k | −£63k | −£92k |
| +3% | £145k | £125k | £103k | £81k | £59k | £35k | £10k | −£16k | −£43k | −£71k | −£100k |
| +2% | £138k | £117k | £96k | £74k | £51k | £27k | £3k | −£23k | −£50k | −£78k | −£107k |
| +1% | £131k | £110k | £89k | £67k | £44k | £20k | −£4k | −£30k | −£57k | −£85k | −£114k |
| 0% | £124k | £104k | £83k | £61k | £38k | £14k | −£11k | −£37k | −£64k | −£92k | −£121k |
| -1% | £118k | £97k | £76k | £54k | £31k | £7k | −£18k | −£44k | −£70k | −£98k | −£128k |
| -2% | £111k | £91k | £70k | £48k | £25k | £1k | −£24k | −£50k | −£77k | −£105k | −£134k |
| -3% | £105k | £85k | £64k | £42k | £19k | −£5k | −£30k | −£56k | −£83k | −£111k | −£140k |
Swipe the grid sideways to see every scenario.
Illustration only, not financial advice. Assumes a repayment mortgage at a fixed rate for the whole period, monthly compounding, no tax on investment gains (as in an ISA or pension wrapper) and no void periods or moving costs for the renter. Total interest paid over the period: £91,188. Total rent paid: £121,211.