Dead Money: Rent vs Mortgage Interest

The comparison period

How many years are you comparing? 10 years

1yr10yr20yr30yr

The dead money picture changes dramatically over time — try dragging this.

If you rent

Monthly rent (£)

Expected annual rent increase (%)

Rents tend to rise over time — your assumption

If you buy

Property price (£)

Deposit (£)

Mortgage rate (%)

Mortgage term (years)

First-time buyer?

Affects stamp duty

Ongoing ownership costs also dead money when you buy

Annual maintenance (% of value)

Buildings insurance (£/yr)

Service charge / ground rent (£/yr) if leasehold

Expected annual house price growth (%)

Affects the equity you build — your assumption, varies hugely by area

Dead money over 10 years

Dead money renting

—

Total rent paid

Dead money buying

—

Interest + fees + costs

—

But buying also builds equity

—

Capital repaid + house price growth

What makes up buying's dead money

Mortgage interest—

Stamp duty—

Buying fees (legal, survey, moving)—

Maintenance—

Insurance—

Service charge—

Selling costs (when you exit)—

Total dead money buying—

Dead money over time

Cumulative — watch where the lines cross

What this means Enter your details above.

The honest bit Renting isn't purely dead money — it buys flexibility, no maintenance bills, and freedom to move. Buying builds equity but front-loads huge interest costs. Neither is simply "dead money." This tool shows the numbers — you decide what matters to you.

For illustrative purposes only. Not financial advice.
Stamp duty: England/NI SDLT rates in force from April 2025 (still current for 2026). Equity assumes house price growth at your chosen rate.