This model is designed to help guide the decision whether to rent an apartment or buy a house or condo. Under the Inputs panel you can adjust the assumptions to fit your specific circumstances and your outlook on certain economic factors. The most important assumptions to adjust to fit your specific situation are the Purchase Price, the equivalent Monthly Rent you will pay if you choose to rent, and the current Mortgage Interest Rate.

Additionally, there are two scenarios. Scenario 1 assumes that if you rent, the entirety of the money you would have otherwise used for a downpayment and renovations is invested, as well as the cash difference in housing costs. We call this the “Nest Egg”. But this is often not reality, so, there is Scenario 2 which assumes that 25% of the money that would otherwise be used for a down payment and renovations is spent on consumer products such as a nicer car, and all the difference in housing costs is spent and not invested. The difference in housing costs and thus spending power should be noted as time passes because the difference becomes significant.


Purchase Price
Initial Fix-Up Cost
Property Value Growth Rate %
Loan to Value %
Down Payment + Fix Up Cost

Amount of "Nest Egg" Invested if Renting
Mortgage Interest Rate %
Return on S&P %

Monthly Rent
Other Rental Costs (Parking, other fees, etc...)
Rental Rate Growth %

Maintenance / YR
HOA Fee
Property Insurance
Annual Property Taxes
Expense Growth Rate %
Transaction Cost Sale %

Initial Renting Owning
Monthly Cost
Total Cumulative Cash Out
Total Increase in Invested Savings
Total Incr. in Prop Value, Principal and Invested Savings
Ending Net Worth
After 5 Years Renting Owning
Monthly Cost
Total Cumulative Cash Out
Total Increase in Invested Savings
Total Incr. in Prop Value, Principal and Invested Savings
Ending Net Worth
After 10 Years Renting Owning
Monthly Cost
Total Cumulative Cash Out
Total Increase in Invested Savings
Total Incr. in Prop Value, Principal and Invested Savings
Ending Net Worth
After 20 Years Renting Owning
Monthly Cost
Total Cumulative Cash Out
Total Increase in Invested Savings
Total Incr. in Prop Value, Principal and Invested Savings
Ending Net Worth