Rent vs Buy a Condo: 10-Year Cost, Equity & Break-Even

What does buying saving $97,576.48 mean?

It means that over 10 years, buying the condo costs $163,799.97 once the equity you keep is counted, while renting the same kind of condo costs $261,376.45 with nothing kept at the end. The buying cash out is larger — $326,035.59 against $261,376.45 of rent — but $162,235.62 of it comes back as equity: the $60,000.00 down payment plus $36,537.30 of mortgage principal repaid plus $65,698.33 of appreciation at 2% a year. The monthly mortgage payment is $1,516.96, and with $350 of HOA and $350 of tax and insurance the monthly buying outlay is $2,216.96 against $1,900 of starting rent — buying costs more each month at first, and wins because equity and appreciation accumulate while rent grows.

Three things to check before you trust the number

Appreciation is doing most of the work. At 2% a year the condo gains $65,698.33 over 10 years — more than half the equity. With 0% appreciation the saving falls to $31,878.15 and break-even moves to year 4. If prices fall, buying wins by less or loses: set the appreciation input to your own view, including 0%, before deciding.

The break-even year is the honest headline, not the 10-year total alone. On the defaults buying is ahead from year 1, but that depends on the appreciation assumption above. With no appreciation, buying trails for the first three years — if you may move in two years, the 10-year win does not help you.

HOA dues are a real condo cost, and they can rise. This page holds the $350 HOA flat for 10 years. Special assessments and HOA increases are not counted, and neither is mortgage insurance — so a low down payment reads slightly cheaper here than in real life.

Worked example

On the defaults: $300,000 price, 20% down, 6.5% over 30 years, $350 HOA, $350 tax and insurance, $1,900 rent growing 3%, 2% appreciation.

1. The down payment and loan: 20% of $300,000 is $60,000.00, so the loan is $240,000.00.
2. The monthly mortgage payment: $240,000.00 at 6.5% over 360 months is $1,516.96, and the monthly outlay with HOA and tax and insurance is $2,216.96.
3. The buying cash over 10 years: $60,000.00 + 120 × $2,216.96 is $326,035.59.
4. The equity over 10 years: $60,000.00 + $36,537.30 of principal repaid + $65,698.33 of appreciation is $162,235.62, leaving a balance of $203,462.70 and a value of $365,698.33.
5. The buying net cost: $326,035.59 − $162,235.62 is $163,799.97.
6. The renting total: $1,900 a month growing 3% a year for 10 years is $261,376.45.
7. The verdict: $261,376.45 − $163,799.97 is $97,576.48 saved by buying, with the cumulative comparison first favouring buying in year 1.

And the other way: the monthly rent that breaks even over 10 years is $1,190.70, the purchase price that breaks even is $666,829.02, and the mortgage rate that breaks even is 10.49% — the exact rate is 10.4893%, so 10.48% still buys and 10.50% already rents.

Every branch, checked

• $250,000 condo, $1,500 rent: $250,000 condo, $1,500 rent: Buying net $150,499.97 over 10 years; renting $206,349.83 — buying saves $55,849.85; break-even in year 1 (mortgage $1,264.14 a month).
• $450,000 condo, $2,500 rent: $450,000 condo, $2,500 rent: Buying net $203,699.95 over 10 years; renting $343,916.38 — buying saves $140,216.43; break-even in year 1 (mortgage $2,275.44 a month).
• $300,000 condo, 10% down at 7%: $300,000 condo, 10% down at 7%: Buying net $195,553.12 over 10 years; renting $261,376.45 — buying saves $65,823.33; break-even in year 1 (mortgage $1,796.32 a month).
• $300,000 condo, $2,400 rent: $300,000 condo, $2,400 rent: Buying net $163,799.97 over 10 years; renting $330,159.72 — buying saves $166,359.76; break-even in year 1 (mortgage $1,516.96 a month).
• $300,000 condo, $600 HOA, rent growing 2%: $300,000 condo, $600 HOA, rent growing 2%: Buying net $193,799.97 over 10 years; renting $249,653.64 — buying saves $55,853.67; break-even in year 1 (mortgage $1,516.96 a month).
• $300,000 condo, 0% appreciation: $300,000 condo, 0% appreciation: Buying net $229,498.29 over 10 years; renting $261,376.45 — buying saves $31,878.15; break-even in year 4 (mortgage $1,516.96 a month).

The reverses, worked backwards

• Monthly rent that breaks even over 10 years: $1,190.70 — at $1,190.70 the figures are Buying net $163,799.97 over 10 years; renting $163,800.49 — buying saves $0.53; break-even in year 10 (mortgage $1,516.96 a month).; at the lower neighbor the figures are Buying net $163,799.97 over 10 years; renting $162,424.83 — renting saves $1,375.14; no break-even within 10 years (mortgage $1,516.96 a month).; at the upper neighbor the figures are Buying net $163,799.97 over 10 years; renting $165,176.16 — buying saves $1,376.19; break-even in year 10 (mortgage $1,516.96 a month).. — verdict: STEP.
• Purchase price that breaks even over 10 years (step $1,000): $666,829.02 — at $666,829.02 the figures are Buying net $261,376.45 over 10 years; renting $261,376.45 — buying saves $0.00; break-even in year 10 (mortgage $3,371.85 a month).; at the lower neighbor the figures are Buying net $261,110.45 over 10 years; renting $261,376.45 — buying saves $266.00; break-even in year 10 (mortgage $3,366.79 a month).; at the upper neighbor the figures are Buying net $261,642.45 over 10 years; renting $261,376.45 — renting saves $266.00; no break-even within 10 years (mortgage $3,376.91 a month).. — verdict: STEP.
• Mortgage rate that breaks even over 10 years (step 0.01%): 10.49% — at 10.49% the figures are Buying net $261,393.19 over 10 years; renting $261,376.45 — renting saves $16.74; no break-even within 10 years (mortgage $2,193.58 a month).; at the lower neighbor the figures are Buying net $261,146.10 over 10 years; renting $261,376.45 — buying saves $230.35; break-even in year 10 (mortgage $2,191.79 a month).; at the upper neighbor the figures are Buying net $261,640.27 over 10 years; renting $261,376.45 — renting saves $263.83; no break-even within 10 years (mortgage $2,195.37 a month).. — verdict: STEP.

What the defaults assume

The defaults are a $300,000 condo, 20% down, a fixed 6.5% rate over 30 years, $350 a month of HOA dues, $350 a month of property tax and insurance, $1,900 a month of rent growing 3% a year, and 2% a year of price appreciation, compounded yearly. The model is a standard amortisation: the monthly payment is fixed for the term, the balance after each year follows the same formula, the renting total compounds the rent growth once a year, and the condo value compounds the appreciation once a year. The rent reverse is checked at $10 either side, because $10 of monthly rent is $1,375.14 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 $266 of 10-year net cost; the rate reverse is checked at 0.01 percentage points either side, because the exact break-even rate is 10.4893%. The model does not count selling costs, maintenance beyond HOA dues, special assessments, 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 condo purchase — $300,000 against $1,900 rent is a $97,576.48 saving over 10 years at 2% appreciation, but only $31,878.15 at 0%: the appreciation assumption matters as much as the total.
• A buyer comparing two asking prices — the price reverse says $666,829.02 is the break-even price at $1,900 rent: above it, renting wins on these inputs.
• A condo shopper checking HOA dues — the $600 HOA branch still buys on these inputs, but the saving falls to $55,853.67: dues alone move the margin by tens of thousands.
• 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 $1,516.96 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 selling costs, no maintenance beyond HOA dues, no special assessments, no mortgage insurance, no tax deductions, and no opportunity cost on the down payment. Appreciation is an assumption you type, not a forecast: 2% a year is the default, 0% is one click away, and a falling market would favour renting more than this page shows. This page is a calculation tool, not buying, mortgage or investment advice.

Cite this calculator

Buying a $300,000 condo at 20% down and 6.5% costs $163,799.97 net over 10 years against $261,376.45 of rent at $1,900 a month growing 3% — a $97,576.48 saving, breaking even in year 1, at 2% appreciation. Source: Bright Side Kit, brightoolbox.com.

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