Finance
Compare simplified renting and home-buying cash flows over a holding period you choose. All prices, rates and rents are your inputs — nothing here is a market forecast.
Results update as you type. No calculate button. All calculations run locally in your browser.
Mortgage modelled as a 30-year fixed-rate loan; rent is held flat with no rent growth. See Scope and limitations below.
—
—
| Value |
|---|
Bars are scaled to the larger figure. Net buying cost is cash paid minus the equity you hold at the end of the holding period.
| Holding length | Value |
|---|
Mortgage balance, home value and equity are recomputed at each holding length. Rent is held flat at the monthly rent you enter, with no rent growth.
Monthly mortgage payment = loan × monthly rate × (1 + monthly rate)360 ÷ [(1 + monthly rate)360 − 1] for a 30-year fixed loan. Remaining balance after m months = loan × (1 + monthly rate)m − payment × [(1 + monthly rate)m − 1] ÷ monthly rate. Future home value = price × (1 + appreciation)years. Net buying cost = down payment + mortgage payments made − ending equity. Advantage of buying = total rent − net buying cost.
Price 400,000, 30% down (120,000), loan 280,000 at 6.5% over 30 years: monthly payment = 1,769.79. After 10 years (120 payments) the remaining balance is 237,373.15. At 2% annual appreciation the home is worth 400,000 × 1.0210 = 487,597.77, so ending equity = 487,597.77 − 237,373.15 = 250,224.61. Cash paid = 120,000 + 1,769.79 × 120 = 332,374.86, so net buying cost = 332,374.86 − 250,224.61 = 82,150.24. Total rent = 2,000 × 120 = 240,000. Advantage of buying = 240,000 − 82,150.24 = 157,849.76. Every price, rate and rent here is an example input, not a market figure.
The mortgage is modelled as a 30-year fixed-rate loan; the holding period you enter only decides how many payments are made and when the balance is measured, it is not a separate loan term. Rent is held flat (no rent growth), and maintenance, property taxes, insurance, transaction costs, investment returns on the down payment, tax effects and local market risk are all excluded. Appreciation is your assumption, not a forecast — changing it changes the answer, so test several values.
Because most purchase mortgages amortise over 30 years while owners typically move sooner. The holding period measures the balance and equity at the point you sell, not the loan's full term.
No. It means buying is cheaper on these simplified cash flows only. Maintenance, taxes, insurance, transaction costs and what the down payment could otherwise earn are all excluded.
Then total rent would be higher than shown and buying would look relatively better. Enter a higher flat rent as a rough sensitivity check, or model rent growth separately.
Very. At 0% appreciation on the worked example the advantage of buying falls from 157,849.76 to 70,251.99 — test 0% and negative appreciation before deciding anything.
Excluded. Money tied up in a down payment cannot be invested elsewhere; a complete comparison would add the return that money could have earned.
No. This calculation runs locally in your browser and the values you enter are not sent to a CalcMintly database.
Results are estimates only and do not constitute professional advice.