Buy to Let vs. Index Fund Comparison

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Is Buy to Let Better Than the Stock Market?

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1Capital Gain Info

2 Rental Income Info

3 Buy-to-Let Mortgage Info

4Your Current Finances

Fill out the form to see the difference between renting and buying a house

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Estimated net worth in 20 years from BtL:

Estimated net worth in 20 years investing in index funds:

Estimated Property Capital Growth per Year in : unknown

Buy to Let Assumptions

  • Your income is high enough for a bank to be willing to lend you the mortgage
  • The B2L mortgage rate is the average bank rate over the past 15 years (7.5%)
  • No pensions, state benefits, or any other kind of assistance contributes towards you net worth
  • Price growth is inflation adjusted
  • Capital and interest payments on the mortgage

Calculation Estimates Breakdown (GBP)

Year Propery Value Outstanding Mortgage Profit from Property Sale Cash Savings Cumulative Rental Profit Net Worth With B2L

Renting Assumptions

  • You invest your savings in Index Funds, which have an average annual return of 7%, which, adjusting for approximately 2% inflation gives an annual return of 5%
  • Your savings are in a stocks and shares ISA, with a tax-free allowance of £20,000 per year

Calculation Estimate Breakdown (GBP)

Year Networth Renting and Saving