★ COMPARISONS · HOUSING · APARTMENT VS CONDO
Rent wins monthly by $719.79 — but the condo wins net by $37,125.09 over 5 years. A $1,800 apartment against a $350,000 condo at 6.5%. Enter your rent, the condo price, and your numbers to compare yours.
Renting an apartment and buying a condo are two different kinds of spending, so the comparison has two answers. This calculator works out both: the monthly cash flow (condo payment against rent) and the net cost over the horizon (counting the equity you build), with the year the rent catches the condo payment.
Renting an apartment and buying a condo are two different kinds of spending, so the comparison has two answers and they point in opposite directions. The first question is the monthly cash flow: which one costs less each month, the rent or the condo payment? The second question is the net cost over the whole horizon: after counting the equity you build in the condo, which one leaves you poorer? A condo payment is partly a cost and partly a purchase: the interest, the HOA, and the tax and insurance are gone, but the principal you pay and the appreciation you gain are yours. Rent is all cost. That is why the two verdicts can disagree — and at the defaults, they do.
At the defaults — rent $1,800 a month, condo price $350,000, down payment 20%, mortgage rate 6.5% on a 30-year fixed loan, HOA $350 a month, property tax plus insurance $400 a month, horizon 5 years, home appreciation 3% a year, rent growth 3% a year — the principal and interest payment is $1,769.79 a month, so the condo costs $2,519.79 a month all in. Rent wins monthly by $719.79. But the down payment is $70,000.00, the payments over 5 years are $151,187.43, the mortgage balance after 60 payments is $262,110.74, the principal paid is $17,889.26, the home is worth $405,745.93, and the equity is $143,635.19. So the net condo cost over 5 years is $77,552.24 against a rent total of $114,677.33: Condo wins net by $37,125.09 over 5 years. Both verdicts are true at the same time.
| Year | Net condo cost | Rent total | Gap (rent − net) |
|---|---|---|---|
| Year 1 | $16,607.85 | $21,600.00 | $4,992.15 |
| Year 2 | $32,691.11 | $43,848.00 | $11,156.89 |
| Year 3 | $48,226.28 | $66,763.44 | $18,537.16 |
| Year 4 | $63,188.66 | $90,366.34 | $27,177.68 |
| Year 5 | $77,552.24 | $114,677.33 | $37,125.09 |
Setup: rent $1,800 a month, condo price $350,000, down payment 20%, mortgage rate 6.5%, HOA $350 a month, property tax plus insurance $400 a month, horizon 5 years, appreciation 3% a year, rent growth 3% a year.
Line 1 — the loan. The loan is $350,000 × (1 − 0.20) = $280,000.00. The down payment is $350,000 × 0.20 = $70,000.00.
Line 2 — the principal and interest. The monthly rate is 6.5% / 12 = 0.00541667. The 30-year payment is $280,000 × 0.00541667 × (1.00541667)^360 / ((1.00541667)^360 − 1) = $1,769.79 a month.
Line 3 — the condo monthly cost. $1,769.79 + $350 HOA + $400 tax and insurance = $2,519.79 a month. Against rent of $1,800.00, rent wins monthly by $719.79.
Line 4 — what you paid over 5 years. $2,519.79 × 60 months = $151,187.43 of monthly payments, plus the $70,000.00 down payment: $221,187.43 out of pocket in total.
Line 5 — the balance and the equity. After 60 payments the mortgage balance is $262,110.74, so the principal paid is $280,000.00 − $262,110.74 = $17,889.26. The home is worth $350,000 × 1.03^5 = $405,745.93, so the equity is $405,745.93 − $262,110.74 = $143,635.19.
Line 6 — the net cost. $70,000.00 + $151,187.43 − $143,635.19 = $77,552.24. The rent total over 5 years is 12 × $1,800 × (1 + 1.03 + 1.03^2 + 1.03^3 + 1.03^4) = $114,677.33. So condo wins net by $37,125.09 over 5 years. Check the identity: down + paid − equity = net, $70,000.00 + $151,187.43 − $143,635.19 = $77,552.24.
Year by year: the condo is ahead on net cost from year 1 — year 1 net $16,607.85 against rent $21,600.00 (gap $4,992.15), year 2 net $32,691.11 against rent $43,848.00 (gap $11,156.89), year 3 net $48,226.28 against rent $66,763.44 (gap $18,537.16), year 4 net $63,188.66 against rent $90,366.34 (gap $27,177.68), year 5 net $77,552.24 against rent $114,677.33 (gap $37,125.09). The down payment converts to equity and the home appreciates, so the net cost stays below the rent total from the first year — while rent stays cheaper month to month. There is no “net break-even year 1” to wait for: the condo is already ahead.
The catch-up that does happen: rent grows 3% a year while the condo’s principal and interest is fixed, so rent’s monthly payment catches the condo’s $2,519.79 in 11.38 years — about 11.4 years, in year 12: rent year 11 is $2,491.62 (still below), year 12 is $2,566.37 (above). That is the meaningful time figure: the monthly verdict flips in year 12, while the net verdict already favours the condo.
Reverse: the rent that ties the 5-year net cost is $1,217.28 a month (exact $1,217.2766). At $1,217.28 the rent total is $77,552.46, twenty-two cents over the net cost; at $1,217.27 it is $77,551.82. The condo price that ties the 5-year rent total is $749,167.11 (at $749,167.11 the net cost is $114,677.33, exactly the rent total; at $749,167.00 it is $114,677.32). The HOA that ties the 5-year rent total is $968.75 a month (exact $968.7516). At $968.75 the net cost is $114,677.24, nine cents under the rent total; at $968.76 it is $114,677.84.
Rent $2,500: the condo still costs $2,519.79 a month against rent of $2,500.00, so rent wins monthly by only $19.79. The rent total over 5 years is $159,274.07 against the same net condo cost of $77,552.24, so condo wins net by $81,721.84. Dear rent makes the condo look better on both measures.
Condo price $250,000: the principal and interest falls to $1,264.14 and the condo monthly cost is $2,014.14, so rent wins monthly by $214.14. The net condo cost is $68,251.60 against the rent total of $114,677.33, so condo wins net by $46,425.73. A cheaper condo narrows the monthly gap and widens the net win.
HOA $0: the condo monthly cost is $2,169.79, so rent wins monthly by $369.79. The net condo cost is $56,552.24, so condo wins net by $58,125.09. Every dollar of HOA is a dollar of monthly cost and a dollar of net cost: $350 a month of HOA is $21,000.00 over 5 years.
Rate 5%: the principal and interest falls to $1,503.10 and the condo monthly cost is $2,253.10, so rent wins monthly by $453.10. The net condo cost is $56,560.56, so condo wins net by $58,116.78. A lower rate helps on both measures, because more of each payment is principal.
10-year horizon: the condo monthly cost is unchanged at $2,519.79, so rent still wins monthly by $719.79. The net condo cost over 10 years is $139,377.28 against a rent total of $247,619.79, so condo wins net by $108,242.52. Time favours the condo: the equity keeps growing while the rent keeps rising.
Down payment 10%: the loan is bigger, so the principal and interest rises to $1,991.01 and the condo monthly cost is $2,741.01, so rent wins monthly by $941.01. The net condo cost is $88,589.51, so condo wins net by $26,087.82 — still a win, but $11,037.27 smaller than with 20% down.
Appreciation 0% — the flip: the home is still worth $350,000.00 after 5 years, so the equity is only the principal paid, and the net condo cost is $133,298.16 against the rent total of $114,677.33: rent wins net by $18,620.83. The monthly verdict is unchanged (rent wins monthly by $719.79), but the net verdict flips. Without appreciation, the condo loses on both measures.
Reverse — the other way round: the rent that ties the 5-year net cost is $1,217.28 a month (exact $1,217.2766); the condo price that ties the 5-year rent total is $749,167.11; the HOA that ties the 5-year rent total is $968.75 a month (exact $968.7516).
The model assumes a 30-year fixed mortgage with no extra payments, no refinancing, and no private mortgage insurance, even at a 10% down payment. It assumes the HOA and the property tax plus insurance stay the same for the whole horizon, the home appreciates at a steady 3% a year, and the rent rises at a steady 3% a year. It assumes the condo is sold at the end of the horizon for its appreciated value with no selling costs, no maintenance, no repairs, and no moving costs, and it does not count the opportunity cost of the down payment or the tax treatment of mortgage interest. With a down payment of 0%, the condo monthly cost is $2,962.24 and the net cost is $99,626.78. With a mortgage rate of 0%, the principal and interest is just the loan divided by 360, the condo monthly cost is $1,527.78, and the net cost is -$10,745.93 — negative, because the equity built and the appreciation together exceed what was paid. Rounding convention: totals are computed from unrounded values, so rounded parts may differ by a cent from their rounded sum; the exact unrounded reverses ($1,217.2766 and $968.7516) are stated wherever the rounded figures appear.
| Output | Formula | What it means |
|---|---|---|
| Principal & interest (P&I) | L × rm × (1+rm)^360 / ((1+rm)^360 − 1) | $1,769.79 a month on a $280,000.00 loan. |
| Condo monthly cost | P&I + HOA + tax & insurance | $2,519.79 a month. |
| Monthly verdict | the lower monthly cost wins | Rent wins monthly by $719.79. |
| Down payment | condo price × down % | $70,000.00. |
| Paid over 5 years | condo monthly × 60 | $151,187.43. |
| Mortgage balance | L × (1+rm)^m − M × ((1+rm)^m − 1) / rm | $262,110.74 after 60 payments. |
| Principal paid | loan − balance | $17,889.26. |
| Home value | price × (1 + app)^Y | $405,745.93 after 5 years. |
| Equity | home value − balance | $143,635.19. |
| Net condo cost (5 yr) | down + paid − equity | $77,552.24. |
| Rent total (5 yr) | 12 × rent × sum of (1 + rent growth)^k | $114,677.33. |
| Net verdict | the lower net cost wins | Condo wins net by $37,125.09 over 5 years. |
| Year 1 net vs rent | same model, Y = 1 | $16,607.85 vs $21,600.00. |
| Year 2 net vs rent | same model, Y = 2 | $32,691.11 vs $43,848.00. |
| Year 3 net vs rent | same model, Y = 3 | $48,226.28 vs $66,763.44. |
| Rent catches the condo | ln(condo monthly / rent) / ln(1 + rent growth) | 11.38 years (rent year 11 $2,491.62, year 12 $2,566.37). |
| Rent that ties the net cost | net / (12 × sum of 1.03^k) | $1,217.2766 → $1,217.28. |
| Condo price that ties the rent total | bisection on the model | $749,167.11. |
| HOA that ties the rent total | (rent total − net without HOA) / 60 | $968.7516 → $968.75. |
| Rent $2,500 | same model, rent $2,500 | Condo $2,519.79/mo, net $77,552.24 vs rent total $159,274.07, Condo wins net by $81,721.84 over 5 years; monthly Rent wins monthly by $19.79. |
| Condo price $250,000 | same model, price $250,000 | Condo $2,014.14/mo, net $68,251.60 vs rent total $114,677.33, Condo wins net by $46,425.73 over 5 years; monthly Rent wins monthly by $214.14. |
| HOA $0 | same model, HOA $0 | Condo $2,169.79/mo, net $56,552.24 vs rent total $114,677.33, Condo wins net by $58,125.09 over 5 years; monthly Rent wins monthly by $369.79. |
| Rate 5% | same model, rate 5% | Condo $2,253.10/mo, net $56,560.56 vs rent total $114,677.33, Condo wins net by $58,116.78 over 5 years; monthly Rent wins monthly by $453.10. |
| 10-year horizon | same model, Y = 10 | Condo $2,519.79/mo, net $139,377.28 vs rent total $247,619.79, Condo wins net by $108,242.52 over 10 years; monthly Rent wins monthly by $719.79. |
| Down payment 10% | same model, down 10% | Condo $2,741.01/mo, net $88,589.51 vs rent total $114,677.33, Condo wins net by $26,087.82 over 5 years; monthly Rent wins monthly by $941.01. |
| Appreciation 0% | same model, app 0% | Condo $2,519.79/mo, net $133,298.16 vs rent total $114,677.33, Rent wins net by $18,620.83 over 5 years; monthly Rent wins monthly by $719.79. |
The math is exact for the numbers you enter: the principal and interest is the standard 30-year amortisation, the balance is the loan grown by the monthly rate less the payments, the home value is the price grown by the appreciation, the equity is the value less the balance, the net cost is the down payment plus the payments less the equity, and the rent total is the rent grown by the rent growth year by year. What the model cannot do is predict a real market: check the appreciation, because a flat market flips the net verdict to rent (rent wins net by $18,620.83 at 0% appreciation), and check the HOA, because a $350 HOA is $21,000.00 over 5 years. It assumes a 30-year fixed mortgage with no extra payments, no refinancing, no private mortgage insurance, a steady HOA and tax, a steady appreciation and rent growth, and a sale at the end of the horizon with no selling costs, no maintenance, and no moving costs. It leaves out the opportunity cost of the down payment and the tax treatment of mortgage interest. For the same question about a house rather than a condo, see rent vs buy calculator; for whether you can afford the condo at all, see mortgage affordability calculator.
Bright Side Kit. "Apartment vs Condo Calculator: Rent or Buy Compared 2026" https://brightoolbox.com/apartment-vs-condo/ Accessed October 25, 2026.It depends which cost you mean. Rent wins monthly by $719.79: the condo costs $2,519.79 a month against $1,800.00 of rent. But the condo wins net by $37,125.09 over 5 years, because the down payment converts to equity and the home appreciates. Both verdicts are true at the same time.
On net cost, from year 1. Year 1 net is $16,607.85 against rent of $21,600.00, year 2 is $32,691.11 against $43,848.00, and year 3 is $48,226.28 against $66,763.44. On monthly cost, the condo never wins at these numbers — but rent’s monthly payment catches the condo’s $2,519.79 in 11.38 years, in year 12.
Then rent wins on both measures. With 0% appreciation the net condo cost is $133,298.16 against a rent total of $114,677.33, so rent wins net by $18,620.83. The monthly verdict is unchanged: rent wins monthly by $719.79 either way.
$1,217.28 a month (exact $1,217.2766). At that rent the 5-year rent total is $77,552.46, twenty-two cents over the condo’s net cost of $77,552.24. At $1,217.27 the rent total is $77,551.82, just under it.
$749,167.11. At that price the 5-year net condo cost is $114,677.33, exactly the rent total. At $749,167.00 it is $114,677.32, one cent under. A condo dearer than that loses to renting on net cost.
$968.75 a month (exact $968.7516). At that HOA the 5-year net condo cost is $114,677.24, nine cents under the rent total. At $968.76 it is $114,677.84, over it. The default HOA of $350 is $21,000.00 over 5 years.