Example data table
| Scenario | Price | Down % | Rent | Mortgage Rate | Horizon | Outcome |
|---|---|---|---|---|---|---|
| Sample A | $350,000 | 20% | $1,800/mo | 7.5% | 7 yrs | Compare net worth and breakeven timing |
| Sample B | $500,000 | 25% | $2,400/mo | 6.5% | 10 yrs | Higher HOA can tilt results |
| Sample C | $280,000 | 15% | $1,300/mo | 8.0% | 5 yrs | Short stays often favor renting |
Formulas used
- Mortgage payment: PMT = P × r × (1+r)n ÷ ((1+r)n − 1), where P is loan amount, r is monthly rate, n is months.
- Amortization: Interest = Balance × r, Principal = PMT − Interest, New Balance = Balance − Principal.
- Home value: Vm = Vm−1 × (1 + ghome), using an effective monthly growth from the annual rate.
- Rent growth: Rent updates monthly from an effective monthly growth rate derived from annual rent growth.
- Owner monthly costs: PropertyTax = (tax% × value)/12, Insurance = annual/12, Maintenance = (maint% × value)/12, plus HOA and mortgage.
- Sale equity at month m: Equity = max(0, Value − (selling% × Value) − LoanBalance).
- Fair investing assumption: Any monthly cost difference is invested by the cheaper option at the investment return rate.
How to use this calculator
- Enter the condo price, down payment, and mortgage details.
- Set HOA, taxes, insurance, and maintenance assumptions.
- Enter current rent and expected rent growth.
- Choose a realistic investment return for saved cash.
- Pick a time horizon matching your expected stay.
- Click Calculate to see the winner and breakeven.
- Use Download CSV or Download PDF to share results.
FAQs
1) What does “breakeven” mean here?
Breakeven is the first month when the estimated owner net worth becomes equal to or higher than the renter net worth, under your assumptions.
2) Does this include HOA fees and maintenance?
Yes. HOA fees are monthly, and maintenance is modeled as a percentage of condo value per year, converted to a monthly cost.
3) How are investment returns used?
The option that costs less in a given month invests the difference at your chosen return rate. This keeps the comparison consistent.
4) Why can renting win even if the condo appreciates?
High financing costs, HOA, taxes, and selling costs can outweigh appreciation, especially over short horizons or when rent is relatively low.
5) Can I use negative appreciation or rent growth?
Yes. You can enter negative values for appreciation or rent growth to explore downside scenarios. The model will apply them monthly.
6) Is this a tax calculator?
No. It does not model deductions, capital gains exemptions, or local tax rules. For tax impacts, consult a qualified professional.
7) Which inputs usually matter most?
Time horizon, mortgage rate, HOA level, appreciation, rent growth, and selling costs typically drive outcomes more than small tweaks elsewhere.