Buy vs Rent Apartment: 10-Year Cost & Equity Comparison

What does buying saving $21,385.09 mean?

It means that over 10 years, buying the apartment costs $253,748.01 once the equity you keep is counted, while renting the same kind of apartment costs $275,133.10 with nothing kept at the end. The buying cash out is much larger — $366,374.86 against $275,133.10 of rent — but $112,626.85 of it comes back as equity: the $70,000.00 down payment plus $42,626.85 of mortgage principal repaid. The monthly mortgage payment is $1,769.79, and with $300 of HOA and $400 of tax and insurance the monthly buying outlay is $2,469.79 against $2,000 of starting rent — buying costs more each month at first, and wins only because the equity accumulates and rent grows.

Three things to check before you trust the number

The break-even year is the honest headline, not the 10-year total alone. Buying is behind renting for the first six years on the defaults, because the down payment counts in year one. If you may move in three years, the 10-year win does not help you — check the year-by-year picture, and the branch where a $600 HOA and 2% rent growth leave renting ahead for the whole 10 years.

No price appreciation is assumed. If the apartment rises in value, buying wins by more; if it falls, buying wins by less or loses. Leaving appreciation out is deliberately conservative for buying, and it keeps the comparison about costs, not about a bet on prices.

The down-payment share does not change the 10-year net cost. A larger down payment means more cash out and the same amount more equity, so the net cost is unchanged on this page. What the down payment does change is the monthly payment, the cash you need on day one, and whether you pay mortgage insurance — the page does not add mortgage insurance, so a low down payment reads slightly cheaper here than in real life.

Worked example

On the defaults: $350,000 price, 20% down, 6.5% over 30 years, $300 HOA, $400 tax and insurance, $2,000 rent growing 3%.

1. The down payment and loan: 20% of $350,000 is $70,000.00, so the loan is $280,000.00.
2. The monthly mortgage payment: $280,000.00 at 6.5% over 360 months is $1,769.79.
3. The buying cash over 10 years: $70,000.00 + 120 × ($1,769.79 + $300 + $400) is $366,374.86.
4. The equity over 10 years: $70,000.00 + $42,626.85 of principal repaid is $112,626.85, leaving a balance of $237,373.15.
5. The buying net cost: $366,374.86 − $112,626.85 is $253,748.01.
6. The renting total: $2,000 a month growing 3% a year for 10 years is $275,133.10.
7. The verdict: $275,133.10 − $253,748.01 is $21,385.09 saved by buying, with the cumulative comparison first favouring buying in year 7.

And the other way: the monthly rent that breaks even over 10 years is $1,844.55, the purchase price that breaks even is $394,093.49, and the mortgage rate that breaks even is 7.26% — the exact rate is 7.2589%, so 7.25% still buys and 7.27% already rents.

Every branch, checked

• $250,000 apartment, $1,500 rent: $250,000 apartment, $1,500 rent: Buying net $187,248.58 over 10 years; renting $206,349.83 — buying saves $19,101.25; break-even in year 6 (mortgage $1,264.14 a month).
• $500,000 apartment, $2,800 rent: $500,000 apartment, $2,800 rent: Buying net $350,497.16 over 10 years; renting $385,186.34 — buying saves $34,689.19; break-even in year 6 (mortgage $2,528.27 a month).
• $350,000 apartment, 10% down at 7%: $350,000 apartment, 10% down at 7%: Buying net $290,793.35 over 10 years; renting $275,133.10 — renting saves $15,660.25; no break-even within 10 years (mortgage $2,095.70 a month).
• $350,000 apartment, $2,500 rent: $350,000 apartment, $2,500 rent: Buying net $253,748.01 over 10 years; renting $343,916.38 — buying saves $90,168.37; break-even in year 1 (mortgage $1,769.79 a month).
• $350,000 apartment, $600 HOA, rent growing 2%: $350,000 apartment, $600 HOA, rent growing 2%: Buying net $289,748.01 over 10 years; renting $262,793.30 — renting saves $26,954.71; no break-even within 10 years (mortgage $1,769.79 a month).
• $200,000 apartment at 5.5%, $1,200 rent: $200,000 apartment at 5.5%, $1,200 rent: Buying net $129,081.07 over 10 years; renting $165,079.86 — buying saves $35,998.79; break-even in year 1 (mortgage $908.46 a month).

The reverses, worked backwards

• Monthly rent that breaks even over 10 years: $1,844.55 — at $1,844.55 the figures are Buying net $253,748.01 over 10 years; renting $253,748.38 — buying saves $0.37; break-even in year 10 (mortgage $1,769.79 a month).; at the lower neighbor the figures are Buying net $253,748.01 over 10 years; renting $252,372.72 — renting saves $1,375.29; no break-even within 10 years (mortgage $1,769.79 a month).; at the upper neighbor the figures are Buying net $253,748.01 over 10 years; renting $255,124.05 — buying saves $1,376.04; break-even in year 10 (mortgage $1,769.79 a month).. — verdict: STEP.
• Purchase price that breaks even over 10 years (step $1,000): $394,093.49 — at $394,093.49 the figures are Buying net $275,133.10 over 10 years; renting $275,133.10 — buying saves $0.00; break-even in year 10 (mortgage $1,992.75 a month).; at the lower neighbor the figures are Buying net $274,648.11 over 10 years; renting $275,133.10 — buying saves $485.00; break-even in year 10 (mortgage $1,987.69 a month).; at the upper neighbor the figures are Buying net $275,618.10 over 10 years; renting $275,133.10 — renting saves $484.99; no break-even within 10 years (mortgage $1,997.81 a month).. — verdict: STEP.
• Mortgage rate that breaks even over 10 years (step 0.01%): 7.26% — at 7.26% the figures are Buying net $275,163.15 over 10 years; renting $275,133.10 — renting saves $30.05; no break-even within 10 years (mortgage $1,911.99 a month).; at the lower neighbor the figures are Buying net $274,880.21 over 10 years; renting $275,133.10 — buying saves $252.89; break-even in year 10 (mortgage $1,910.09 a month).; at the upper neighbor the figures are Buying net $275,446.12 over 10 years; renting $275,133.10 — renting saves $313.01; no break-even within 10 years (mortgage $1,913.89 a month).. — verdict: STEP.

What the defaults assume

The defaults are a $350,000 apartment, 20% down, a fixed 6.5% rate over 30 years, $300 a month of HOA dues, $400 a month of property tax and insurance, and $2,000 a month of rent growing 3% a year. The model is a standard amortisation: the monthly payment is fixed for the term, the balance after each year follows the same formula, and the renting total compounds the rent growth once a year. The rent reverse is checked at $10 either side, because $10 of monthly rent is $1,375.29 over 10 years at 3% growth and shows the step cleanly; the price reverse is checked at $1,000 either side, because $1,000 of price is about $485 of 10-year net cost; the rate reverse is checked at 0.01 percentage points either side, because the exact break-even rate is 7.2589%. The model does not count price appreciation, selling costs, maintenance beyond HOA dues, mortgage insurance, tax deductions, or the return you could earn on the down payment if you rented instead — those all move the real answer, and the page states them so the comparison is not over-read.

Output · formula · meaning

Who uses this

• A renter weighing a first apartment purchase — $350,000 against $2,000 rent is a $21,385.09 saving over 10 years, but only from year 7: the horizon matters as much as the total.
• A buyer comparing two asking prices — the price reverse says $394,093.49 is the break-even price at $2,000 rent: above it, renting wins on these inputs.
• A condo shopper checking HOA dues — the $600 HOA branch shows dues alone can flip the verdict: $289,748.01 buying against $262,793.30 renting.
• A student learning amortisation on a real decision — one worked example from payment to principal to equity to net cost, and the branches that show how each input moves the answer.

Accuracy & limitations

Figures are the model's own arithmetic on the numbers you type, computed from unrounded values and displayed rounded HALF_UP to 2dp: the monthly payment is $1,769.79 from the exact amortisation formula, and the 10-year totals follow from it, not from the rounded payment. The main limitation is what the model leaves out: no price appreciation, no selling costs, no maintenance beyond HOA dues, no mortgage insurance, no tax deductions, and no opportunity cost on the down payment. A low down payment therefore reads slightly cheaper here than in real life, and a rising market would favour buying more than this page shows. This page is a calculation tool, not buying, mortgage or investment advice.

Cite this calculator

Buying a $350,000 apartment at 20% down and 6.5% costs $253,748.01 net over 10 years against $275,133.10 of rent at $2,000 a month growing 3% — a $21,385.09 saving, breaking even in year 7. Source: Bright Side Kit, brightoolbox.com.

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